The Board of Directors of the Eastern Company for Smoking approved the sale of the treasury shares owned by the company, which were purchased during the period from March 24, 2020, to May 31.
The company clarified that the number of treasury shares to be sold is 35.382 million shares, indicating that the sale will take place at the market price on the day of execution.
She indicated that there is no direct impact of the sale process on the company’s performance indicators.
The period that will be during the sale process has been determined and starts from today until May 5, or until the full quantity is sold, whichever is earlier.
It is noteworthy that the Board of Directors of the Financial Supervisory Authority approved in March 2020 the amendment of the provisions regulating dealing with treasury shares through companies listed on the stock exchange, mentioned in Article 51 of the registration rules, with the exception of the pre-notification period, which was decided at least three working days before the proposed date of implementation.
The supervision issued temporary exceptional measures that allow the aforementioned companies to notify the stock exchange on the same proposed day for implementation to purchase treasury shares through the open market and at the price of the security during the trading session, provided that the quantity requested to be purchased does not exceed the legally prescribed percentage of 10% of the company’s shares.
In light of these procedures, the main shareholders of the company pledge not to participate in the sale, and if the company’s purchase of treasury shares results in the voting rights of any of them exceeding the required rates to submit a compulsory purchase offer. The closest general assembly of the company is in accordance with the provision of Article 51 of the registration rules, and in all cases, he shall not purchase the securities until the completion of these procedures.
The Financial Control will announce the date of the end of the work with these exceptional measures, and it is also entitled to suspend those procedures for any of the companies in a way that guarantees the correctness and integrity of the transactions on the securities.
The article “Eastern Tobacco” decided to sell 35.4 million treasury shares, which was written in the Al-Borsa newspaper.