eXtra shareholders approve 20% capital hike, buyback of 100,000 shares

United Electronics Co.’s (eXtra) shareholders approved a 20% capital hike to SAR 600 million from SAR 500 million through the issue of bonus shares, during the extraordinary general meeting (EGM) held on May 5, 2020.

Shareholders also approved the buyback of 100,000 shares to retain them as treasury shares under the Employees Long-Term Incentive Program (LTIP), financed from the cash dividends of the treasury shares in the LTIP.

In addition, they authorized the board of directors to complete the repurchase process in a period of 12 months maximum from the general meeting date, and the company may retain its treasury shares for a maximum period of 8 years.

Shareholders also delegated the board of directors to distribute interim dividends on a quarterly or semi-annual basis for FY2020.

They further approved the board of directors’ recommendation to distribute a 12.5% cash dividend, or SAR 1.25 per share, for the second half of 2018, in addition to the distribution of 22.5% cash dividend, or SAR 2.25 per share, for FY2019.

In a separate statement, the Saudi Stock Exchange (Tadawul) said that the fluctuation limits, on Wednesday, for eXtra will be based on a share price of SAR 51.90. 

Furthermore, the Securities Depository Center (Edaa) will deposit the additional shares into investor’s portfolios by Sunday, May 10, 2020.