eXtra board proposes 3M share buyback

Logo of United Electronics Co. (eXtra) 

United Electronics Co.’s (eXtra) board recommended, on Dec. 18, repurchasing a maximum of 3 million ordinary shares to be retained as treasury shares, according to a statement to Tadawul.

The company’s board indicated that the stock’s current market price is below its fair value, adding the buyback will be funded from eXtra’s internal resources and proceeds from the successful initial public offering (IPO) of its subsidiary, United International Holding Co.

Currently, 4.4% of the company’s share capital is being held as treasury shares.

Repurchased shares do not have voting rights in shareholders' meetings.

The buyback will need the approval of the extraordinary general meeting and fulfill the repurchase compliance with the financial solvency terms stipulated in the executive regulations of the Companies Law applicable to listed joint-stock companies.

eXtra floated 7.5 million shares of United International Holding, representing 30% of capital, at SAR 132 each. The total IPO proceeds reached SAR 990 million, according to data available with Argaam.

eXtra currently owns 69% of the subsidiary's capital after its debut on TASI earlier this month.