Al-Modawat board recommends buyback of 118,750 treasury shares

Logo of Al-Modawat Specialized Medical Co.

Al-Modawat Specialized Medical Co.'s board of directors recommended, on April 13, the repurchase of 118,750 shares to retain as treasury shares, according to a statement to Tadawul.

The board of directors believes that the stock market price is less than its fair value, the company said, noting that the buyback will be financed from its own resources.

The recommendation is subject to the approval of the next extraordinary general meeting (EGM), whose date will be announced later, as per the executive regulations of the New Companies Law for Listed Joint Stock Companies.

This will come after the company fulfills all financial solvency conditions stipulated in the New Companies Law. In addition, an auditor report will be submitted in this regard.

The medical services provider added that it currently does not have any treasury shares, noting that the buyback will be carried out within 12 months from the EGM date.

The repurchased shares will have no voting rights for shareholders in the general meetings.