Atlas Elevators board recommends 300,000 treasury share buyback

Logo of Atlas Elevators General Trading and Contracting Co.

Atlas Elevators General Trading and Contracting Co.'s board of directors submitted a recommendation on Jan. 30 to the upcoming extraordinary general meeting (EGM) to repurchase a maximum of 300,000 shares, or 5% of the company’s share capital.

In a filing to Tadawul, the company said the stock buyback is to keep the repurchased shares as treasury shares.

The board of directors believes that the stock market price is less than its fair value, the company said, noting that the repurchase will be financed from the company's own resources.

Atlas Elevators does not currently have any treasury shares. The repurchased shares will not have any voting rights in the general meetings.

The stock buyback is pending the EGM’s approval and fulfilment of the financial solvency requirements stated in the implementing regulations of the Companies Law.