SADAFCO shareholders approve 2.75 mln share buyback

SADAFCO headquarters

Saudia Dairy and Foodstuff Co.’s (SADAFCO) shareholders approved the board recommendation to buy back up to 2.75 million shares, during the extraordinary general meeting (EGM) held on Nov. 15.

The repurchased shares will be retained as treasury shares, as the board of directors deems that the stock market price is less than fair value, SADAFCO said in a statement to Tadawul.

The share buyback will be financed by the company’s cash resources, the statement noted.

Shareholders also delegated the board to complete the purchase in one or several stages within a period of 12 months from the date of the EGM approval.

The repurchased shares will be retained as treasury shares for a maximum period of five years from the EGM approval date.

Earlier, SADAFCO’s board of directors recommended the buyback of 8.46% of the company's shares, or up to 2.75 million shares, to be retained as treasury shares, Argaam reported.