Sipchem board recommends extension of 10% shares repurchase

Sahara International Petrochemical Co.'s (Sipchem) board of directors recommended today, March 31, 2021, extending the repurchase of 10%, or 73.33 million, of its shares, according to a bourse statement.

The board also recommended adding the sell option to provide the company with more liquidity when necessary.

The repurchased shares will be retained as treasury shares through cash balances or credit facilities, the statement said, adding that the share repurchase will be financed from Sipchem’s resources or credit facilities.

Sipchem currently holds 6.17 million treasury shares, representing 0.84% of its ordinary shares. Purchased shares will have no voting rights at the general assembly meeting.

The recommendation is pending the approval of the upcoming extraordinary general meeting, in accordance with Paragraph 3 of Article 12 of the regulatory rules and procedures issued pursuant to the Companies Law.

The Tadawul-listed firm will comply with the conditions of financial appropriateness as provided in Paragraph 3 of Article 12 of the regulatory rules and procedures issued pursuant to the Companies Law.

In April 2020, Sipchem shareholders approved, during the EGM, buying back 10%, or 73.33 million shares, to be retained as treasury shares, and it completed, on Sept. 30, the first phase of the share repurchase, Argaam reported.

Shareholders also authorized the board to buy back the shares within 12 months of the EGM date.