stc shareholders to vote on 150% capital hike to SAR 50 bln on Aug. 30

Logo of stc

Shareholders of stc will vote on increasing the company’s capital by 150% through a bonus-share distribution during an extraordinary general assembly meeting (EGM) scheduled to be held on Aug. 30, according to a bourse filing.

Shareholders will also vote on amending the dividend distribution policy. 

Additionally, shareholders will vote on the repurchase of a number of stc’s shares at a maximum of 15 million shares. The proposed shares to be repurchased reflect the possible 150% increase in the telco’s capital for an amount not exceeding SAR 453 million to be allocated under its employee stock incentive plan. 

The repurchase will be financed from the telecom operator’s own resources. Further, the board of directors, or whoever it delegates, will be authorized to complete the repurchase within 12 months from the EGM approval date. The repurchased shares will be kept no longer than seven years from the EGM approval date. Once the period lapses, stc will follow the rules and procedures stipulated in the relevant laws and regulations.