Bawan’s board recommends 3 mln share buyback

Logo of Bawan Co.

Bawan Co.’s board of directors recommended on June 27 buyback of up to three million shares, or a maximum of 5% of the total issued shares, to retain as treasury shares.

The share buyback will be financed from the company’s cash resources or credit facilities, Bawan said in a bourse statement.

Currently, Bawan does not hold any treasury shares.

The board’s decision is based on the consideration that the share price on the Saudi Exchange (Tadawul) is lower than its fair value.

The recommendation will be submitted to the upcoming extraordinary general meeting (EGM) for approval. The repurchased shares will have no voting rights in the general assembly meetings.

Bawan concluded that it is also required to fulfill the financial solvency conditions provided by the regulatory standards and procedures issued under the Companies Law.