stc plans 26M share buyback for employee incentive program

stc said the share buyback will be financed through its own resources

Saudi telecom major stc’s board of directors recommended the buyback of 26 million shares, to be allocated for the employee stock incentive program (ESIP), according to a statement to Tadawul today, Dec. 31.

The planned repurchase will be financed through stc’s own resources, the statement said, adding that the company holds 0.204% in treasury shares.

The TASI-listed telecom operator added that it will seek approval for the buyback process during the next extraordinary general meeting (EGM), as required by Paragraph 4 of Article 17 of the Executive Regulations of the Companies Law for Listed Joint Stock Companies.

It also noted that the repurchased shares will not have voting rights in the shareholders’ assemblies and will not be entitled to any dividends during the period the company holds them.

According to data available on Argaam, these shares to be held as treasury will represent 0.52% of its 5 billion shares of its capital.