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United International Transportation Co.'s (Budget Saudi) board of directors recommended, on July 28, buyback of up to 7.12 million shares, or a maximum of 10% of the total issued shares, to retain as treasury shares.
The share buyback will be financed from the company’s cash resources or credit facilities, according to a bourse filing today, July 31.
Currently, Budget Saudi does not hold any treasury shares.
The board’s decision is based on the consideration that the share price on the Saudi Exchange (Tadawul) is lower than its fair value.
The recommendation will be submitted to the upcoming extraordinary general meeting (EGM) for approval. The repurchased shares will have no voting rights in the general assembly meetings.
The firm will be required to fulfill the financial solvency conditions provided by the regulatory standards and procedures issued under the Companies Law, the statement noted.
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