SACO recommends buyback of 224,400 shares

Logo of Saudi Company for Hardware (SACO)

Saudi Company for Hardware’s (SACO) board of directors recommended, on Oct. 30, the buyback of up to 224,400 treasury shares. In a statement to Tadawul, the company said that the recommendation is based on the board’s view that the stock’s market price is below its fair value.

The company will use its own resources — cash or credit facilities —to repurchase the shares.

The company currently holds 0.349% in treasury shares, the statement said, noting that the repurchased shares will not have voting rights at general assembly meetings.

The board’s recommendation will be presented to the upcoming extraordinary general assembly (EGM), which will be announced later for approval as per Article 17(4) of the Implementing Regulations of the Companies Law for Listed Joint Stock Companies.

The company will ensure full compliance with the solvency requirements stipulated in article 17 (3) and present a report issued by the company’s auditor in accordance with the requirements of the said article.

The target shares represent 0.62% of SACO’s total 20 million shares, according to Argaam data.