Hail Cement’s board recommends buying 4.9 mln shares to hold as treasury shares

Hail Cement factory

Hail Cement Co.’s board of directors recommended purchasing up to 5% of the company's ordinary shares, or 4.9 million shares, and holding them as treasury shares, during a meeting on June 1.

In a statement to Tadawul, Hail Cement said the board considers that the current share price is less than its fair value.

The purchase of shares will be financed from Hail Cement’s own resources using its cash balances and/or credit facilities, the statement noted.

Shareholders’ approval is mandatory for the purchase, Hail Cement said, adding that conditions of financial appropriateness as provided in paragraph 3 of article 12 of the Regulatory Standards and Procedures Issued Pursuant to the Companies Law must be met.

Purchased shares will not have voting rights in the general assembly’s meetings, it added.