Najran Cement board recommends 17M treasury share buyback

Logo of Najran Cement Co.

Najran Cement Co.'s board of directors recommended, on Sept. 25, buying back up to a maximum of 17 million treasury shares, the company said in a statement to Tadawul.

The buyback will be financed from the company's own resources using cash reserves or credit facilities.

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The board believes the stock price is undervalued and the company does not currently own any treasury shares.

The buyback is pending the approval of the extraordinary general meeting (EGM).

Additionally, it must meet the financial solvency requirements stipulated in the Companies Law.

The repurchased shares will not have voting rights in shareholders' meetings, the statement noted.

According to the data available with Argaam, the company intends to repurchase 10% of its total treasury shares, amounting to 170 million.