Zamil general assembly approves buying back 3 mln treasury shares

Zamil Industrial Investment Co.’s shareholders approved, during the extraordinary general meeting (EGM) held on May 7, buying back 5%, or 3 million treasury shares, worth SAR 50 million.

The company said in a bourse statement that the share repurchase will be financed using the company’s own resources.

Shareholders also authorized the board 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 main purpose for the purchase is to stabilize the fluctuating share price since the board considers it to be lower than its fair value, the statement added.