Riyadh – Mubasher: The extraordinary general meeting (EGM) of Zamil Industrial Investment Co.has approved to purchase some of its shares with a maximum amount of three million shares to be retained as treasury shares.

The value of the purchase shall not exceed SAR 50 million nor 5% of the total number of outstanding shares, according to the company's disclosure to the Saudi Stock Exchange (Tadawul) on Sunday.

The decision aims to stabilise the fluctuating share price as the company's board considers that the share is traded on the exchange at a price less than its fair value.

The share buyback will be funded through the company’s internal resources from available cash within 12 months of the EGM's approval date.

The company could keep the treasury shares for a maximum period of five years without selling them or allocating them for employee stock options.