Saudi Paper shareholders to vote on buyback of up to 1 mln treasury shares on Jan. 29

Logo of Saudi Paper Manufacturing Co.

Saudi Paper Manufacturing Co.’s shareholders will vote on the repurchase of up to one million treasury shares, not exceeding 5% of the issued capital, during an extraordinary general meeting (EGM) to be held on Jan. 29, according to a statement to Tadawul.

The decision came as the board and executive management see that the share market price is less than its fair value.

The repurchase will be financed from the company's own resources using its cash balances or credit facilities, it said.

It added that the board of directors will be authorized to complete the purchase process within a maximum period of 12 months from the EGM date. The firm will keep the purchased shares for five years tops as of the meeting date, in accordance with the regulatory controls for listed companies.

Saudi Paper also said it will fulfill all regulatory requirements and obtain necessary approvals before completing the buyback process.