SADAFCO recommends purchase of 2.75 mln company shares in 12 months

Saudia Dairy and Foodstuff Co. (SADAFCO) has recommended to buy back 8.46 percent of its own shares, or 2.75 million, over the next 12 months as the price on the Saudi Stock Exchange (Tadawul) is lower than its fair value.

SADAFCO said in a bourse statement today that the shares purchased, from the approval of the next extraordinary general meeting (EGM) date, will be held and used as treasury shares.

The purchase of the shares will be financed by SADAFCO from its own resources.

SADAFCO will call for an EGM to obtain consent for the purchase and also comply with the Conditions of Financial Appropriateness as provided in the Companies Law.

The company currently holds 1.53 percent, or 500,250 shares, as treasury shares.