Alkhabeer Growth & Income Fund plans buyback of up to 20% units

Logo of Alkhabeer Growth and Income Traded Fund

Alkhabeer Capital, the fund manager of Alkhabeer Growth and Income Traded Fund, said that the fund’s board of directors approved, on July 18, its recommendation to be proposed at the next unitholders’ meeting, according to a Tadawul statement.

The proposals include approving the buyback of the fund’s units for cancelation of a maximum of 20% of the initial outstanding units at a price not exceeding the fund’s net asset value per unit, subject to compliance with the rules and regulations of the Capital Market Authority (CMA) and the fund’s terms and conditions.

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Approve the dividend distribution policy at the unitholders’ meeting, which will be announced later, following the approval of the CMA.

In addition, the unitholders will approve the fund manager’s right to appoint a market maker for the fund and amend the fund’s terms and conditions.

The fund manager also noted that the buyback of the units will be financed through the fund’s net assets and will be made through the stock exchange.

In addition, the repurchased units shall neither have any voting rights at the unitholders’ meeting, nor entitlements to the fund’s distributions. The purchases will be made over a period of 12 months from the date of approval of the unitholders.

The fund has not issued any treasury units, the statement added.