Nayifat board approves buyback of 3.4M treasury shares

Logo of Nayifat Finance Co.

Nayifat Finance Co.’s board of directors recommended the repurchase of a maximum of 3.4 million shares, or 2.83% of the company's total ordinary shares, to be retained as treasury shares, according to a statement to Tadawul today, Dec. 12.

The board of directors sees the company's stock as underpriced. The buyback process will be financed from the company's internal resources using its cash balance.

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Nayifat currently holds no treasury shares. The repurchased shares will not have voting rights in the general assembly’s meetings.

The extraordinary general assembly’s approval on the transaction is still pending. In addition, financial solvency requirements entailed under the executive regulations issued pursuant to the Companies Law shall be fulfilled.

The company has already obtained the no-objection of the Saudi Central Bank (SAMA) on the share buyback.