Ataa board cancels 2.1M shares buyback recommendation

Logo of Ataa Educational Co.

Ataa Educational Co.’s board of directors has withdrawn a proposal to repurchase 2.1 million of the company’s ordinary shares and retain them as treasury shares.

The decision follows executive and investment committee guidance to defer the buyback pending an evaluation of potential educational sector acquisitions, investment opportunities, and associated funding needs to balance expansion with liquidity, it said in a Tadawul disclosure today, Nov. 10.

It added that the board’s decision will take effect from the date of its approval, in accordance with the relevant authorities and regulatory procedures.

The company will announce any material developments in due course.

As per Argaam’s data, Ataa’s board, in September, recommended to the extraordinary general assembly (EGM) taking regulatory procedures that enable the company to repurchase its shares and retain them as treasury shares, noting that the share price is below its fair value.