Maharah board approves 3.75 mln share buyback for employee stock incentive plan

Logo of Maharah Human Resources Co.

Maharah Human Resources Co. board of directors approved on Dec. 13, the repurchase of up to 3.75 million shares, or 10% of the company's share capital, to be allocated for the long-term employee incentive stock plan.

In a statement to Tadawul, Maharah pointed out that the share buyback will be financed from the company's internal resources, adding that the company currently owns no treasury shares.

The board of directors, moreover, delegated the managing director the power to buy back the shares at appropriate price, submit the recommendation before the company’s extraordinary general meeting (EGM) for voting, and repurchase the shares within 12 months as of the approval date, the statement added.

As per the provisions set forth in Article 12, Clause IV of the Regulatory Procedures and Controls issued in implementation of the Saudi-listed companies’ law, the repurchase decision is subject to voting during the next EGM, the date for which will be announced later.

This will be followed by the company’s fulfillment of all financial solvency conditions provided in Article 12, Clause III of the Regulatory Procedures and Controls.

Pursuant to this clause, the company is also required to submit a report filed by its chartered accountant and obtain the relevant authorities’ approval.

Maharah further pointed out that shares allocated to employee incentive plan will not be entitled to any dividends during the period the company holds them as treasury shares. The repurchased shares will not have voting rights in the shareholders’ general assembly meetings.