Aramco: Approval to purchase 350 million treasury shares, with a maximum value of 11.3 billion riyals
Yesterday, the Board of Directors of Saudi Aramco approved the purchase of the company’s shares up to a maximum of 350 million ordinary shares through the market, to keep them as treasury shares.
Aramco said in a statement on its website "Saudi Arabia trading": According to the decision, the company may retain the shares for a maximum period of (10) years from the date of purchase without selling them or allocating them.
The company may purchase the shares within a period of (18) months from the date of issuance of the decision, through one or several deals, and the company will announce upon completion of all purchases.
She explained that the purpose of the purchase if the goal of purchasing them is to keep them as treasury shares for the purpose of allocating them to the employee stock plans program.
She noted that By financing the purchase process from the company’s own resources, noting that the percentage of the company’s treasury shares currently out of the total class of shares subject to purchase is 0.04%.
According to Saudi Aramco’s bylaws, the Board of Directors may decide to repurchase the company’s shares if this is for the purpose of allocating these shares to the company’s employees through an employee stock program, or for any other purpose that the Board of Directors deems to achieve the company’s interests. Due to the issuance of the Board’s approval, there is no requirement for the Extraordinary General Assembly’s approval of the purchase process.
Aramco reported that it has met the conditions for financial solvency contained in the third paragraph of Article Seventeen of the Executive Regulations of the Companies Law for Listed Joint Stock Companies.
The shares that will be purchased will not have the right to vote in the general shareholders’ assemblies, as long as the company holds them.
The Board approved the purchase up to a maximum value of 11.3 billion riyals (3 billion US dollars).
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