Leejam shareholders OK 9.7% dividend for Q1 2024; 200,000 share buyback

Shareholders of Leejam Sports Co. (Fitness Time) approved the board's recommendation to pay a cash dividend of SAR 0.97 a share, or 9.7% of capital, for Q1 2024, during the extraordinary general meeting held on June 6, the company said in a statement to Tadawul.

Shareholders also authorized the board of directors to distribute cash dividends for 2024 on a semi-annual or quarterly basis.

They agreed to transfer the statutory reserve of SAR 135.6 million, as per the audited financial statements for Q1 2024, to retained earnings.

Shareholders approved the employees stock option program (ESOP) and authorized the board of directors to determine the program terms, including the allocation price for each share offered to employees if it is for consideration.

Meanwhile, they approved repurchasing up to 200,000 shares to allocate to the employee stock incentive program. The share buyback will be financed from the company’s resources.

Additionally, shareholders authorized the board to complete the repurchase process within 12 months from the date of the extraordinary general meeting (EGM) approval date.

The purchased shares will be kept for a maximum period of seven years from the EGM’s approval date. Once the holding period expires, the company will follow the rules and procedures stipulated in the relevant laws and regulations.