© Archyde.com. “Electric Cables” buys 450 thousand treasury shares yesterday
The Egyptian Electric Cables Company (CA:) bought 450 thousand treasury shares during the trading session yesterday, Sunday.
The board of directors of the Egyptian Electric Cable Company had agreed to buy treasury shares through the open market, and not to exceed the legal percentage of 10% of the company’s total shares, as it is a good investment opportunity for the company.
The execution will take place from today, March 23 until June 22, at the same price of the security during the trading sessions during the execution period.
The profits of the “Egyptian Electric Cables” company decreased by 19.9% during the past year to reach 133.5 million pounds, compared to a net profit of 166.8 million pounds during the previous year 2019, taking into account the rights of minority shareholders.
The company’s revenues decreased during the past year 2020, to reach 1.74 billion pounds, compared to total sales of 2.03 billion pounds in the previous year.
The Egyptian Electric Cable Company agreed to sell the total treasury shares owned by the company, amounting to 89.29 million shares.
The company added that treasury shares will be dealt with from February 18 to March 17.
With regard to the justifications for selling, the company indicated the approaching end of the period allowed to own treasury shares.
She explained that the percentage of ownership in the company’s shares before the implementation of the sale is 2.5%, and it is scheduled to reach zero after the implementation is completed.
She indicated that Pioneers (CA:) Securities is the brokerage company executing the sale.
The company achieved, during 9 months of this year, a net profit of 104.38 million pounds from the beginning of January until the end of last September, compared to 116.18 million pounds in profits during the same period last year, taking into account minority rights.
The “Egyptian Electric Cables” company bought 470,000 treasury shares during last Thursday’s trading session. The “Egyptian Electric Cables” company bought 470,000 treasury shares during last Thursday’s trading session. The company’s sales fell during the nine months to 1.25 billion pounds at the end of September, compared to 1.59 billion pounds during the same period last year.
At the beginning of March 2020, the Board of Directors of the Financial Supervisory Authority agreed to amend the provisions regulating dealing with treasury shares through companies listed on the stock exchange, which are contained in Article No. 51 of the listing rules, with the exception of the period of prior notice, which was scheduled at least three working days before the proposed date of implementation.
The supervision also issued temporary exceptional procedures that allow the aforementioned companies to notify the stock exchange on the same day the proposed implementation of the purchase of treasury shares through the open market at the price of the security during the trading session, provided that the quantity required to be purchased does not exceed the legally prescribed percentage, which is 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 percentages required to submit a compulsory purchase offer, a pledge to abstain from voting with that percentage shall be submitted at the company’s general assembly until his percentage returns to what it was or the matter is presented to the The nearest general assembly of the company in accordance with the provision of Article 51 of the listing rules, and in all cases, he is obligated not to purchase the security until the completion of those procedures.
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