Savola plans 2.8M share buyback

Savola will allocate the treasury shares to the employees’ long-term incentive program

Savola Group’s board of directors, on Sept. 10, recommended a buyback of 2.8 million shares, the company said in a statement to Tadawul.

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The treasury shares will be allocated to the employees’ long-term incentive program (LTIP) for the executives of Savola and its subsidiaries.

The proposal aligns with the board’s approval to annually allocate treasury shares to three targeted tranches in line with the criteria and conditions of the program, which was launched in 2020.

The program aims to attract, retain, and motivate top-talent and high-performing executives, thereby supporting the group’s strategic objectives.

The share repurchase will be financed from the company’s internal resources.

The share repurchase will be subject to approval by the upcoming extraordinary general meeting (EGM) in line with the regulations of the Companies Law.

The financial solvency requirements set out in Articles 4/17 and 3/17 will also be fulfilled through a solvency report to be issued by the company’s external auditor and sent along with the EGM invitation.

The proposed share repurchase represents 0.93% of the company’s total outstanding shares.

Currently, treasury shares represent 0.27% of the total class of shares repurchased.

Savola clarified that treasury shares already held and those to be acquired will not carry voting rights at shareholders’ meetings.