Leejam proposes repurchase of 3.3M shares

Logo of Leejam Sports Co.

Leejam Sports Co.’s board of directors recommended, on July 19, the repurchase of up to 6.3% of issued shares (3.3 million ordinary shares) to retain as treasury shares.

The repurchase will be from Leejam’s own resources or bank facilities, the company said in a statement to Tadawul.

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The board believes the market price of the share is lower than its fair value, the statement added, noting that its current treasury shareholding represents 0.3% of the targeted share class. The repurchased shares will not carry voting rights in shareholder meetings or be eligible for dividends during the holding period.

The recommendation will be presented to shareholders for voting during an extraordinary general meeting (EGM), the date for which will be disclosed in due course.

The company added that the financial solvency requirements will be met through a report issued by the company’s auditor, to be attached to the EGM invitation.