SADAFCO recommends up to 2.7M share buyback to retain as treasury

Saudia Dairy and Foodstuff Co. (SADAFCO) headquarters

Saudia Dairy and Foodstuff Co.’s (SADAFCO) board of directors recommended today, March 8, a buyback of up to 2.7 million shares to be held as treasury stock.

The board believes the company’s market price is below its fair value.

In a statement to Tadawul, the company said the repurchase will be self-financed, adding that the purchased shares will not carry voting rights at shareholders’ meetings.

SADAFCO currently owns 540,370 treasury shares, representing 1.663% of the total shares under the buyback.

The transaction requires approval from the upcoming extraordinary general meeting (EGM), in addition to meeting the solvency conditions stipulated in the executive regulations of the Companies Law for listed joint-stock companies.

The shares recommended for purchase represent 8.34% of the company’s total shares, which stand at 32.5 million shares, according to Argaam’s data.