2024-03-15 13:00:01
The maximum purchase price is set at 140 dirhams when the minimum sale price is set at 68 dirhams.
Operation : The program covers 1,500,000 shares as the maximum number to hold, or 0.17% of the company’s capital. The maximum amount to be committed in execution of the said system is 210,000,000 dirhams.
Promoting market liquidity is the main objective of the share buyback program initiated by Itissalat Al Maghrib. The Moroccan Capital Market Authority (AMMC) has, in fact, approved the notice of this system which begins on April 15 and will end on October 14, 2025. The program concerns 1,500,000 shares as a maximum number to hold, i.e. 0.17% of the company’s capital. The maximum purchase price is set at 140 dirhams when the minimum sale price is set at 68 dirhams.
“The buyback program consists of intervening on the share market by issuing purchase and/or sale orders with the aim of promoting the liquidity of the share,” recalls Itissalat Al Maghrib in its information notice. Through this program, the issuer does not aim to build up a stock of securities in order to subsequently carry out a financial transaction or an allocation to employees or the subsequent cancellation of the repurchased securities. The issuer also aims neither to seek a financial result nor to support the price by opposing a strong market trend. Referring to Itissalat Al Maghrib, a liquidity contract will be backed by this buyback program. Three modalities are determined. Thus, the liquidity contract covers 20% of the repurchase program, or 300,000 shares, in accordance with the sixth resolution of the AGO of March 28, 2024. Furthermore, the securities account allocated to the liquidity contract must be cleared at the latest at the end of the buyback program. Likewise, the liquidity contract must be managed in a separate account.
It should be noted that this share buyback program that Maroc Telecom intends to implement will be financed by its own resources. Note that the company has available cash of nearly 89 million DH as of December 31, 2023. “The company could acquire its shares on the central market, without exceeding the maximum level to be committed of 210,000,000 DH. In all cases, the value of the own shares held by the company cannot at any time be greater than the amount of reserves other than legal or the maximum level authorized by the general meeting for the buyback program subject to the notice of sale. information,” notes Itisalat Al Maghrib. And to add: “In the event that Itissalat Al-Maghrib proceeds, during the duration of this repurchase 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 March 28, 2024, it could not hold its own shares for an amount exceeding said reserves.
It should be noted that purchases and sales of Maroc Telecom shares will be made at any time on the Paris Stock Exchange and on the Central Market of the Casablanca Stock Exchange, at purchase and sale prices falling within the intervention range. authorized by the ordinary general meeting of March 28, 2024, subject to adjustments linked to possible capital transactions. “These adjustments will be approved as part of the authorizations by the company’s corporate bodies,” specifies Itissalat Al Maghrib which has entrusted, by contract concluded on October 17, 2023, the management of its buyback program to Rothschild Martin Maurel as service provider. investment service in accordance with the ethics charter established by the French Financial Markets Association and approved by the AMF.
Referring to the notice from Itissalat Al Maghrib, the contract can be renewed from year to year, by express renewal, without its total duration being able to exceed three years, i.e. a maximum expiry date scheduled for October 16, 2026. This contract is part of the extension of the services covered by previous contracts. In this sense, Maroc Telecom will not allocate any additional amount prior to the execution of the planned program.
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