SADAFCO shareholders OK SAR 554.7M reserve transfer

Logo of The Saudia Dairy and Foodstuff Co. (SADAFCO) 

The Saudia Dairy and Foodstuff Co.’s (SADAFCO) shareholders approved transferring the statutory reserve balance of SAR 162.5 million, as per the interim financial statements ended on June 30, 2024, to retained earnings.

The approval took place during an extraordinary general meeting (EGM) on Dec. 17, according to a statement to Tadawul.

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Shareholders also approved transferring the optional reserve balance of SAR 392.22 million, as per the interim financial statements ended on June 30, 2024, to retained earnings.

They also agreed on the company’s proposal to repurchase up to 2.75 million shares to hold as treasury shares.

The board of directors, or its designee, believes the stock’s market price is below its fair value, the statement added, noting that the buyback will be financed using the company’s internal resources.

Shareholders gave the board the authority to execute the buyback in one or multiple phases within a maximum period of 12 months from the EGM’s approval date.

The company will retain the purchased shares for up to five years from the date of approval. If this period expires, SADAFCO will comply with the relevant regulations and procedures specified in the applicable laws and guidelines.