SADAFCO board recommends 2.75M treasury share buyback

SADAFCO headquarters

Saudia Dairy and Foodstuff Co.’s (SADAFCO) board of directors recommended today, Sept. 17, buying back up to 2.75 million shares and retaining them as treasury shares.

The board believes the stock price is undervalued. The buyback will be funded from internal resources. The repurchased shares will not have voting rights in shareholders' meetings, the company said in a statement on Tadawul.

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Currently, as many as 500,250 shares, or 1.539% of the company’s share capital, are being held as treasury shares.

The buyback is still pending the extraordinary general meeting’s (EGM) approval. It must also meet the financial solvency requirements stipulated in the Companies Law for listed companies.

In a separate Tadawul statement, SADAFCO's board recommended transferring the statutory reserve of SAR 162 million and the optional reserve of SAR 392.22 million (as of June 30, 2024) to retained earnings.