The Board of Directors of Eshraq Investments has set a new business strategy following the acquisition of shares in Goldilocks Investment Company Limited.

 

The board approved a plan to fully monetise the company’s land bank over the next three years through the sale or through introducing partners to develop the land bank and then sell them. The board also noted the progress made by the management in this regard.

 

The board also approved the company’s new dividend policy. Under the revamped dividend policy, it will target to pay, subject to shareholders approval, a minimum annual dividend of 2 fils per share for the year 2022 and expects the dividend per share to increase by 0.5 fils to reach a minimum of 4 fils per share by 2026. 

 

The board will put forward the new dividend policy to the company’s shareholders for approval at the next General Assembly Meeting.

 

As Eshraq has received all necessary approvals for its buyback programme, including at the last Annual General Meeting and most recently from SCA, the company anticipates commencing the buyback programme after the two-week public notification deadline that expires on September 6, 2022, and anticipates buying a minimum of 3% of the cCompany’s share capital every year.

 

The board further noted the recent decisions of the shareholders meeting to contribute financial assets to Goldilocks as an in-kind subscription. Goldilocks will become the company's core asset, and the composition of the assets is expected to lead to greater stability, improved returns and reduced mark-to-market volatility, it said.

 

The board has also decided to reorganise the board committees to maximise their efficiency. This includes the constitution of an Executive Committee that will assist the board in managing the company’s land monetization, other investments, and ongoing support to the company’s management, it said.-TradeArabia News Service