Edarat board recommends 500,000 share buyback for employee incentive program

Logo of Edarat Communication and Information Technology Co.

Edarat Communication and Information Technology Co. board of directors recommended, on Aug. 22, buying back up to 500,000 shares to be held as treasury shares, constituting no more than 0.22% of the total issued shares, to allocate them to the Employee Stock Incentive Program (ESIP).

The repurchase will be from the company's own resources, Edarat said in a statement to Tadawul.

A recommendation will be raised to the Extraordinary General Assembly for voting, said the company, adding that the shares will be purchased within 12 months from the EGM's approval.

The EGM approval must be obtained for the shares buy-back transaction, also financial solvency requirements contained in Implementing Regulations issued pursuant to the Companies Law shall be fulfilled.

The repurchased shares will not have voting rights in the general assembly’s meetings, the statement added.