SADAFCO board recommends 2.75 mln share buyback

SADAFCO headquarters

The board of directors of Saudia Dairy and Foodstuff Co. (SADAFCO) recommended today, Oct. 17, the buyback of 8.46% of its shares, or up to 2.75 million shares, over the next 12 months from the date of the next extraordinary general meeting’s (EGM) approval.

The repurchased shares will be retained as treasury shares, as the board of directors deems that the stock market price is less than fair value, SADAFCO said in a statement to Tadawul.

The company’s treasury shares shall not at any time exceed 10% of total shares under the Saudi Companies Law.

SADAFCO currently holds 1.539% (500,250) of its ordinary shares as treasury shares.

The share buyback will be financed by the company’s cash resources, the company noted, affirming that the EGM consent must be obtained for the repurchase.

The food manufacturer meets all financial appropriateness requirements according to the auditor’s report, pursuant to the Companies Law, the statement added.