SAIC shareholders to vote on 20% capital hike via bonus shares, 2.5 mln shares buyback on Dec. 11

Logo of Saudi Advanced Industries Co. (SAIC)

Shareholders of Saudi Advanced Industries Co. (SAIC) will vote on a 20% capital hike through a bonus-share distribution (one bonus share for every five shares held) during an extraordinary general meeting (EGM) scheduled to be held on Dec. 11, according to a bourse filing.

In case of fractional shares, they will be compiled in one portfolio and will be sold at market price. Proceeds will be distributed to shareholders pro rata, within 30 days.

Additionally, shareholders will vote on the company's stock repurchase, at a maximum of 2.5 million shares. Buybacks will be maintained as treasury stocks as the board of directors or the person so authorized deems that the share market price is less than its fair value.

The stock buyback will be financed through the company’s own funds as well as credit resources. The board will be delegated to complete the process within a period of no longer than 12 months from the EGM’s approval.

Shares will be maintained for a period of five years maximum from the EGM’s approval day. Afterwards, the company will follow the procedures and controls stipulated in the relevant laws and regulations.