Saudi Paper's shareholders approve repurchase of 1 mln treasury shares

Logo of Saudi Paper Manufacturing Co.

Shareholders of Saudi Paper Manufacturing Co. (SPM) approved on Jan. 29 the board of directors’ recommendation to repurchase up to one million treasury shares, not exceeding 5% of the issued capital, according to a statement to Tadawul.

The decision came as the board and executive management see that the share market price is less than its fair value.

The repurchase will be financed from the company's own resources using its cash balances or credit facilities, it said.

Shareholders authorized the board to buy back shares within 12 months from the approval date, the statement added.

The company will keep the repurchased shares for a maximum period of five years from the date of the shareholders’ approval and in accordance with the regulatory controls for listed joint stock companies issued by the Capital Market Authority.

SPM will follow the necessary regulatory procedures and controls as stipulated in the relevant laws and regulations, it added.