Maaden shareholders OK capital hike, share buyback

Maaden headquarters

Shareholders of Saudi Arabian Mining Co. (Maaden) approved the board recommendation to increase capital by 50% through a bonus share distribution during the extraordinary general meeting (EGM) held on June 7.

The company will distribute one share for every two shares held and capitalize SAR 12.31 billion from the statutory reserve and retained earnings, Maaden said in a statement to Tadawul.

Shareholders also approved the employees stock incentive program, and authorized the board to set the relevant terms, including the allocation price for each share offered to employees, if any.

Additionally, shareholders endorsed the company's share buyback of 2.17 million shares maximum. The repurchased shares will be allocated for the employees’ stock incentive program. The buyback will be financed by the company’s own resources. The board will be authorized, or whomever it delegates, to complete the repurchase within a maximum period of 12 months from the date of the EGM’s approval.

Shares will be retained for a period of five years maximum from the EGM’s approval day. Afterwards, the company will follow the procedures and controls stipulated in the relevant laws and regulations.

In a separate statement, the Saudi Exchange (Tadawul) announced that fluctuation limits will be based on a share price of SAR 43.55 for today, June 8, and the outstanding orders will be canceled.  Furthermore, the Securities Depository Center (Edaa) will deposit the bonus shares into the investor’s portfolios on June 12.