Arabian Cement seeks to buy back 150,000 shares, SAR 595M reserve transfer

Arabian Cement factory

Arabian Cement Co.’s board of directors proposed the repurchase of up to 150,000 shares, or 0.15% of its ordinary shares, to be held as treasury shares under its Long-Term Incentive Program (LTIP) in favor of its employees, aimed at attracting and retaining outstanding talent.

The cement producer clarified in a statement to Tadawul that the repurchase will be financed from its own resources, noting that the company currently holds no treasury shares.

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The decision is pending the approval of the extraordinary general meeting, whose date will be announced later, the company said, adding that it will comply with the solvency requirements.

Shares will be repurchased within a period not exceeding 12 months from the date of shareholders’ approval.

The repurchased shares, to be retained by the company for up to five years, will not have voting rights at general meetings, the statement noted.

In a separate statement, the company said that the board of directors also recommended the transfer of the statutory reserve of SAR 500 million and the general reserve of SAR 95 million, as of Dec. 31, 2024, to retained earnings.