Al Rajhi Takaful shareholders nod to 300,000 share buyback

Logo of Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful)

Shareholders of Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful) approved on June 3 the repurchase of a maximum of 300,000 shares, to be allocated for the employee stock incentive program (ESIP).

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In a statement to Tadawul, the insurance services provider said the board of directors was authorized to complete the buyback process in 18 months maximum from the extraordinary general meeting’s (EGM) date.

The company will retain the purchased shares for a maximum 10 years from EGM date until allocated to eligible employees.

Once this period expires, Al Rajhi Takaful will follow the procedures stipulated in the relevant laws and regulations.

Meanwhile, shareholders also gave the go-ahead for ESIP and delegated the board to set the relevant terms, including the allocation price for each share offered to employees, if paid.

They also approved amending Article 11 of the company’s bylaws on share issuance, which allows the company to repurchase and sell its shares for employee stock programs or any other purpose.