OREANDA-NEWS. Share buybacks are a simple strategy that sees a share issuer repurchases some of its outstanding shares from shareholders through open market transactions. Once shares are bought back they will be converted into treasury shares which means that are no longer categorised as shares outstanding. Motivations for share buy-backs include companies seeing stock valuations aligned with balance sheet objectives or employee compensation changes.

Share buy-back information can be found on the company disclosure page on the SGX website using the Announcement category and sub category of Share Buy Back-On Market.

For the first week of the month from 2 to 6 February, there were a total of 1,067,200 shares repurchased by two stocks with a total consideration of S\$3.4 million. This is an increase from the same period last year, which sees a total of 419,000 shares purchased by two stocks with a total consideration of S\$0.7 million. For the first week of February 2015, the two stocks that did the purchase were Singapore Technologies Engineering and Powermatic Data System.

The table below details the specifics of the buybacks of these two stocks. The table is sorted by the total consideration amount from 2 to 6 February which collates the amount of shares purchased and the purchasing price of the shares. The date of the relevant share buyback mandate is also provided in addition to the amount of shares authorized to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies issued shares that have been repurchased under the mandate are also provided.

Name

Start

Date

 Mandate Total no of shares purchased: 2-6 Feb Total Consideration: 2-6 Feb S\$ Cum no. of shares purchased to date Percent*
SINGAPORE TECHNOLOGIES ENGINEERING 24/04/2014 62,340,211 983,200 3,342,397.11 13,280,300 0.43
POWERMATIC DATA SYSTEMS 25/07/2014 17,400,400 84,000 15,207.36 204,000 0.12

Source: SGX *percentage of company’s issued shares excluding treasury shares as at the date of the share buy-back resolution

Singapore Technologies Engineering

On 24 April 2014, a share buy-back resolution was passed for Singapore Technologies Engineering. Between 2 and 6 February, Singapore Technologies Engineering repurchased a total number of 983,200 shares with a total consideration of S\$3,342,397.11.

The maximum number of shares authorized for the buy-back transaction was 62,340,211. As of end of last week, by way of acquisition, Singapore Technologies Engineering had purchased a cumulative amount of 13,280,300 shares under the 24 April resolution. This represented 0.43% of the company’s issued shares (excluding treasury shares) as at the date of the share buy-back resolution.

As of 5 February 2015, the number of issued shares excluding treasury shares stood at 3,108,644,599 and the number of treasury shares held after purchase stood at 13,280,300.

Powermatic Data Systems

On 25 July 2014, a share buy-back resolution was passed for Powermatic Data Systems. Between 2 and 6 February, Powermatic Data Systems repurchased a total number of 84,000 shares with a total consideration of S\$15,207.36.

The maximum number of shares authorized for the buy-back transaction was 17,400,400. As of end of last week, by way of acquisition, Powermatic Data Systems had purchased a cumulative amount of 204,000 shares under the 25 July resolution. This represented 0.12% of the company’s issued shares (excluding treasury shares) as at the date of the share buy-back resolution.

As of 2 February 2015, the number of issued shares excluding treasury shares stood at 174,755,000 and the number of treasury shares held after purchase stood at 204,000.