Hail Cement shareholders to vote on 4.9 mln share buyback on June 28

Hail Cement factory

Hail Cement Co.’s shareholders will vote on the buyback of 4.9 million shares, during the extraordinary general meeting (EGM), scheduled for June 28, according to a bourse filing.

These shares will be retained as treasury shares, as the board indicated that the stock trades below its fair value. The buyback will be financed by the company’s own resources or credit facilities.

The board of directors will be authorized to finalize the repurchase process within 12 months maximum from the EGM date.

The company will retain the repurchased shares for 10 years maximum.

Shareholders can start e-voting on the EGM agenda through Tadawulaty services from June 24, the statement added.

Hail Cement’s board of directors recommended on June 1 repurchasing up to 5% of the company's ordinary shares, or 4.9 million shares, according to Argaam’s data.