Chemanol board recommends up to 5% treasury share buyback

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Methanol Chemicals Co.’s (Chemanol) board of directors recommended, on Nov. 17, repurchasing up to 5%, or 3.37 million ordinary shares maximum, as treasury shares to the extraordinary general meeting (EGM), the company said in a statement to Tadawul. 

This will be implemented if the company’s board, or its delegate, believes that the market value of shares is less than their fair value. 

The repurchase will be financed from the company’s own resources, the statement added, indicating it does not hold any treasury shares at the moment. 

Chemanol said that the repurchased shares are not entitled to vote in the general assembly meetings.   

The share repurchase recommendation is subject to the approval of the upcoming EGM, the date for which will be determined later.   

The company will meet all the required conditions and approvals before exercising the purchase of its shares. 

Additionally, Chemanol will fulfill the conditions of financial solvency mentioned in the regulatory controls and procedures of Article 12 (3) in implementation of the Companies Law for Listed Joint Stock Companies.