SADAFCO shareholders to vote on SAR 554.7M reserves transfer on Dec. 17

Saudia Dairy & Foodstuff Co. (SADAFCO) headquarters

The Saudia Dairy and Foodstuff Co.’s (SADAFCO) shareholders will vote on transferring the statutory reserve balance of SAR 162.5 million, as per the interim financial statements ended June 30, 2024, to retained earnings, during the extraordinary general meeting (EGM) scheduled for Dec. 17, 2024.

In a statement to Tadawul, the company said shareholders will also vote on transferring the optional reserve balance of SAR 392.22 million, as per the interim financial statements ended June 30, 2024, to retained earnings.

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Additionally, shareholders will decide on the company’s proposal to repurchase up to 2.75 million shares to hold as treasury shares.

The board of directors, or its designee, believes the stock’s market price is below its fair value, the statement added, noting that the buyback will be financed using the company’s internal resources.

Shareholders will grant the board the authority to execute the buyback in one or multiple phases within a maximum period of 12 months from the EGM’s approval date.

The company will retain the purchased shares for up to five years from the date of approval. If this period expires, SADAFCO will comply with the relevant regulations and procedures specified in the applicable laws and guidelines.