Saudi Paper's board recommends repurchasing up to 1 mln treasury shares

Logo of Saudi Paper Manufacturing Co.

Saudi Paper Manufacturing Co.’s board of directors recommended today, Dec. 18, the repurchase of up to one million treasury shares, not exceeding 5% of the issued capital, according to a statement to Tadawul.

The decision came as the board and executive management see that the share market price is less than its fair value.

The recommendation will be submitted to the company's extraordinary general meeting (EGM), the date of which will be announced later, to vote and buy shares within 12 months from the approval date, it added.

The purchase will be financed from the company's own resources using its cash balances or credit facilities, it said, noting that no treasury shares are currently owned.

Saudi Paper also said it will fulfill all regulatory requirements and obtain necessary approvals before completing the purchase process.

The report below shows that Saudi Paper fulfilled Clause (3) of Article 12 of the Companies Law and its Implementing Regulations: