Najran Cement approves statutory reserve transfer, share buyback

Najran Cement Co.’s shareholders approved transferring the statutory reserve of SAR 163.62 million, as per annual financial statements ended Dec. 31, 2023, to the retained earnings balance of SAR 138.15 million.

This came during the extraordinary general meeting (EGM) held on Dec. 22, according to a statement to Tadawul.

Shareholders also endorsed the buyback of a maximum of 17 million shares to be retained as treasury shares, as the board believes that the stock trades below its fair value.

The share repurchase will be financed from the company's own resources, cash balance or credit facilities. The board will be authorized to finalize the repurchase process within a maximum period of 12 months from the general meeting date and will retain the repurchased shares for a maximum period of 10 years.

The cement producer will follow the procedures and controls stipulated in the relevant laws and regulations after the end of this period, the statement noted.