Nofoth shareholders OK 2.4M share buyback

Nofoth plans to allocate repurchased shares to employee stock incentive program

Nofoth Food Products Co.’s shareholders approved the buyback of 2.4 million shares maximum to be allocated for the employee stock incentive program (ESIP), during the extraordinary general meeting (EGM) held on Sept. 25, according to a statement to Tadawul.

The share repurchase will be financed from internal resources and the board of directors will be authorized to complete the share buyback in 18 months maximum from the EGM date.

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The company will retain the repurchased shares for five years maximum from the EGM date. After the expiry of the five-year period, the company will follow the applicable regulations in this regard.

According to data compiled by Argaam, the company’s board of directors recommended on Aug. 3 the repurchase of up to 2.4 million ordinary shares to be held as treasury shares for ESIP.

Currently, the company’s treasury shares represent 30.55% of the total shares being repurchased. The planned buyback represents approximately 2.5% of the company’s total 96 million shares.