Zamil shareholders to vote on buy back of 3 mln shares on May 7

Zamil Industrial Investment Co.’s shareholders are set to vote on purchasing 5%, or 3 million, of its treasury shares worth SAR 50 million, during the extraordinary general meeting that will be held on May 7, 2020.

The company said in a statement to Tadawul that the main purpose for the purchase is to stabilize the fluctuating share price since the board considers is to be lower than its fair value.

Meanwhile, shareholders will authorize the board of directors to complete the buying process either in 1 phase or in several phases within a period not exceeding 12 months from the date of the general assembly’s approval.

The purchased shares will be kept for a maximum period of 5 years from the date of buyback without selling or they will be allocated to the employee stock incentive plan.

The company will fund the purchase through its own cash resources, the statement added.