SACO board recommends 350,000 treasury shares buyback

Logo of Saudi Company for Hardware

Saudi Company for Hardware’s (SACO) board of directors recommended the repurchase of up to 350,000 shares, or 0.97% of the company’s total shares, as treasury shares, during a meeting held on Feb. 14, the company said in a statement to Tadawul.

The repurchase is based upon the board’s viewpoint that the market price of the company’s shares is less than fair value.

The transaction will be financed from SACO internal cash resources, including its available cash or credit facilities, the statement added, indicating that the company does not hold any treasury shares at the moment.

The hardware retailer emphasized that the share repurchase is subject to the shareholders’ approval. Moreover, the company has to fulfill all the solvency requirements in line with the Saudi Companies Law.

SACO indicated that the repurchased shares are not entitled to vote in the general meetings.