Arriyadh Development’s board recommends buyback of 10 mln shares

Arriyadh Development Co. recommended to repurchase a maximum of 10 million of its shares, with a value not exceeding SAR 150 million, to be retained as treasury shares, the company said in a statement to Tadawul on Monday.

The purpose of the share buyback is to keep them as treasury shares in order to maintain the price stability of the stock, as the board of directors believes that the current market price is less than the fair value of the stock.

The share repurchase will be financed from the company’s own resources, the statement added.

The company will call for an extraordinary general meeting to obtain approval for the shares buyback, in accordance with the rules and regulations of the Companies Law, as they will be repurchased within 12 months from the date of board approval today, Monday, August 17, 2020.

The treasury shares will not have voting rights in the general meetings, the statement noted.