Jahez EGM OKs 7.63M share buyback for employee stock program

Logo of Jahez. The share repurchase will be financed either through its own resources or bank facilities

Jahez International Company for Information System Technology (Jahez) approved the buyback of up to 7.63 million treasury shares to be allocated to its employee stock program.

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The approval was given at the company’s extraordinary general meeting (EGM), held on Sept. 11, the company said in a statement to Tadawul.

The share repurchase will be financed either through the company’s own resources or bank facilities, with the board of directors authorized to complete the transaction within a maximum period of 18 months from the date of the EGM’s approval.

Jahez added that it will retain the repurchased shares for a maximum of five years from the date of approval, after which the company will comply with the relevant regulations and procedures.

Shareholders also approved amending the purpose of 3.55 million treasury shares approved in November 2023, following the stock split. Around 1.54 million shares will now be earmarked for share swaps in acquisitions, while 2.02 million shares will be allocated to the employee stock program, with the retention period extended to five years.

According to Argaam data, the company’s board recommended a share buyback of up to 7.63 million shares, representing up to 3.64% of total shares, to be held as treasury shares and allocated to the employee stock program.