Acwa to repurchase 1.2M shares for employee incentive plan

Acwa shareholders authorize board to complete repurchase within 18 months from EGM date

Acwa Co.’s shareholders approved the buyback of 1.19 million shares maximum to allocate to the employee stock incentive program, during the extraordinary general meeting (EGM) held on Feb. 23, according to a statement to Tadawul.

The share repurchase will be financed through the company’s own resources and the board will be authorized to finalize the relevant procedures within a period of 18 months maximum from the date of the general meeting, the statement added.

The company will retain the repurchased shares for a maximum seven years from the date of the EGM approval until they are allocated to the employee share program.

Upon the expiry of this period, the company will follow the procedures and controls stipulated in the relevant articles and authorized the board of directors to determine the terms of the program, including the allocation price per share offered to employees if provided for consideration.

According to Argaam data, the shares targeted for repurchase represent 0.16% of the company’s total 766.5 million outstanding shares. Treasury shares currently held by the company account for 0.11% of the total class of shares subject to the purchase.