Sport Clubs recommends buyback of 1.45M shares for employee share program

Logo of Sports Clubs Co.

The board of Sport Clubs Co. recommended, on Aug. 6, to buy back 1.45 million ordinary shares to be allocated to its employee share program.

In a statement to Tadawul, the company said the repurchased treasury shares will be allocated to eligible employees in accordance with the terms and conditions of the employee share program.

The buyback will be financed from the company’s own resources.

Treasury shares currently represent 0% of the total shares to be repurchased.

The buyback shares will have no voting rights at shareholders’ meetings and will not be eligible for any dividends during the period they are held by the company.

The proposed buyback remains subject to shareholder approval and compliance with the solvency requirements stipulated in the Executive Regulations of the Companies Law for listed joint-stock companies.

Sport Clubs confirmed that it will announce any other material developments in due course.

Under Article 17(5) of the Implementing Regulations of the Companies Law for Listed Joint Stock Companies, share purchases on a single trading day may not exceed 25% of the company’s average daily trading volume over the five trading days preceding the purchase.

For the purpose of calculating the average daily trading volume under this paragraph, negotiated transactions are excluded from the company’s daily trading volume.

The company added that paragraph 6 of the same article stipulates that the purchase price may not exceed 5% of the market closing price on the day preceding the day on which the purchase is executed.

Paragraph 8 stipulates that the share purchases will be carried out through the market and will not be conducted through negotiated transactions.

According to Argaam data, the shares to be repurchased represent 1.27% of the company’s total 114.4 million shares.