Maaden shareholders to vote on capital hike, 2.17 mln share buyback on June 7

Headquarters of Maaden

Shareholders of Saudi Arabian Mining Co. (Maaden) will vote on a 50% capital increase through the distribution of bonus shares during the extraordinary general meeting (EGM) scheduled for June 7.

The company will distribute one share for every two shares held and capitalize SAR 12.31 billion from statutory reserve and retained earnings to raise capital, Maaden said in a statement to Tadawul.

Maaden said shareholders will vote on employees stock incentive and authorize the board to set the relevant terms, including the allocation price for each share offered to employees, if any.

Additionally, shareholders will vote on the company's share buyback of 2.17 million shares maximum. The repurchased shares will be allocated for the employees stock incentive program. The buyback will be financed by the company’s own resources. The board will be authorized, or whomever it delegates, to complete the repurchase within a maximum period of 12 months from the date of the EGM’s approval.

Shares will be retained 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.