Astra plans 4.8 mln share buyback as treasury shares, incentive program

Logo of Astra Industrial Group

Astra Industrial Group announced its plans to repurchase a maximum of four million shares, or no more than 5% of the total issued shares to retain them as treasury shares. 

The board’s decision considers that the share price on the Saudi Exchange (Tadawul) is lower than its fair value.   

In a separate bourse statement, the company announced plans to repurchase a maximum of 800,000 shares, or no more than 1% of the total issued shares to retain them as treasury shares for the Employee Shares Incentive Program (ESIP).    

The buyback of ordinary shares will be financed from the company’s cash resources and/or credit facilities.  

The recommendations will be submitted to the extraordinary general meeting (EGM) for approval. The company must also fulfill the financial solvency conditions provided by the regulatory standards and procedures issued under the Companies Law.  

The repurchased shares will have no voting rights in the general assembly meetings.  

The company currently holds no treasury shares, the statement noted.