Hedab Alkhaleej proposes buyback of up to 750,000 shares

Hedab Alkhaleej’s board believes that stock price in the market is below its fair value.

Hedab Alkhaleej Trading Co. said its board recommended on April 5 a buyback of up to 750,000 ordinary shares to be held as treasury stock.

In a statement to Tadawul, the company said the board believes the current market price of its shares is below fair value, adding that the buyback will be financed through internal resources or credit facilities.

The transaction is subject to approval by an upcoming extraordinary general meeting, in accordance with Article 17 of the executive regulations of the Companies Law for listed companies. The meeting date will be announced later.

The company said it will meet the solvency conditions set out in the regulations and will submit a report from its external auditor confirming compliance.

The shares to be purchased will not carry voting rights at the company’s general assembly meetings.