Emirates:  Eshraq Investments PJSC announced on Monday that its shareholders approved acquisition of an additional 7 per cent shares under its share buyback programme for up to Dh110 million.

The additional share buyback comes on the back of the request from the shareholders at its annual general meeting held on April 28, 2023 where shareholders recommended the company to increase the shareholder distribution via an increased share buyback programme and replace cash dividend.

The buyback will capitalise on the current share price discount compared to the company’s book value. As of date, the company holds 93.06 million treasury shares. As part of the company’s current buyback programme, Eshraq has bought back 70.5 million shares since August 2022 at an average price of Dh0.4977, generating a book value gain of Dh32.73 million to its shareholders. The increased share buyback is expected to enhance shareholder value on account of acquisition at a discount to Eshraq’s book value.

The additional buyback is subject to Securities and Commodities Authority approval. At the Company’s AGM, the shareholders also approved via a special resolution the renewal of company’s plans to cross-list its shares on the Saudi Stock Exchange (Tadawul).

Jassim Alseddiqi, Chairman of Eshraq Investments, said: “We are pleased to announce shareholder endorsement for an increase in share buyback. At the AGM, the shareholders proposed to opportunistically allocate the capital for buybacks versus dividend payment to benefit from the prevailing share price discount to Eshraq’ book value. The additional share buyback will further enhance long term shareholder value due to purchase of shares at a discount to book value. Eshraq has consistently delivered returns accretive to our shareholders, driven by a balanced and assertive strategy to enhance profitability. Going forward, we remain committed to leveraging opportunities to unlock further growth while delivering exceptional value to shareholders.”