stc plans 15 mln share buyback to cover employee stock incentive plan

Logo of stc

The board of directors of stc approved today, June 28, the repurchase of up to 15 million shares, valued at SAR 453 million. The proposed number of buybacks reflects the planned 150% increase in the company’s capital, under the board’s recommendation on a bonus issue.

The repurchased shares will be allocated for stc’s employee stock incentive plan and will be financed by its internal resources, stc said in a statement to Tadawul.

The current percentage of stc’s treasury shares of total target shares stand at 0.125%.

The recommendation will be submitted to the upcoming extraordinary general assembly (EGM) for voting. Moreover, the repurchase process shall be implemented within 12 months from the EGM’s approval date, which will be announced later.