“Douja Promotion Groupe Addoha plans to ensure the financing of this share buyback program by mobilizing its available cash as well as by bank loans …”
Douja Promotion Groupe Addoha is launching a new share buyback operation. The information notice relating to this program has just been approved by the Moroccan Capital Market Authority (AMMC). It will, moreover, be proposed to the ordinary general meeting “at an extraordinary meeting”, the date of which is scheduled for September 3. The operation concerns a maximum of shares to be held in the order of 4,025,512 shares, or 1% of the capital.
“The company could acquire its shares on the central market without exceeding the maximum level to be committed of MAD 48,306,144. In all cases, the value of the own shares held by the company may not at any time be greater either than the amount of reserves other than legal ones or the maximum authorized by the ordinary general meeting of the extraordinary meeting of September 3, 2020 ”. read the program manual. And to continue:
“In the event that Douja Promotion Groupe Addoha proceeds during the duration of the buyback program to the distribution or even the reduction of its reserves other than legal to an amount lower than the amount authorized by the ordinary general meeting of September 3, 2020, may not acquire its own shares for an amount exceeding the said reserves ”. This program, which should start from September 11 and continue until March 10, 2022, sets the maximum purchase amount at 12 dirhams and the minimum at 6 dirhams.
“Douja Promotion Groupe Addoha plans to ensure the financing of this share buyback program by mobilizing its available cash as well as by possible bank loans at market conditions”, explains the Group. It should be noted that at the end of 2019, Douja Promotion Groupe Addoha’s available cash amounted to 251,573,101.53 dirhams. This own share buyback program aims to promote share liquidity on the stock market. However, this program does not aim to build up a stock of securities in order to subsequently carry out a financial transaction or an allocation to employees. It does not at any time stipulate the subsequent cancellation of the redeemed securities. Likewise, this redemption does not aim at seeking a financial result, nor at supporting the price by opposing a strong market trend.
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