stc repurchases 11.59 mln shares for SAR 453 mln to cover employee stock incentive plan

Logo of Telecom services provider stc

Telecom services provider stc completed the repurchase of the required shares allocated to the employee stock incentive plan.

In a statement to Tadawul, stc confirmed that it has completed the buyback of the required shares in one tranche, and no additional shares will be bought during the specified purchase period of 12 months from the date of the extraordinary general assembly meeting (EGM).

The company repurchased 11.59 million shares at SAR 453 million for an average price of SAR 39.16 per share.

The shares allocated to the employee stock incentive plan will not be entitled to dividends during the retention period, the statement noted.

In August, stc shareholders approved the repurchase of a number of shares at a maximum of 15 million shares. The proposed shares to be repurchased reflect the possible 150% increase in the telco’s capital for an amount not exceeding SAR 453 million to be allocated under its employee stock incentive plan, Argaam earlier reported.

The repurchase was to be financed from the telecom operator’s own resources.

Further, the board of directors, or whoever it delegates, will be authorized to complete the repurchase within 12 months from the EGM approval date. The repurchased shares will be kept no longer than seven years from the EGM approval date. Once the period lapses, stc will follow the rules and procedures stipulated in the relevant laws and regulations.