OREANDA-NEWS. Share buyback is a simple strategy where a share issuer repurchases some of its outstanding shares from shareholders through open market transactions. Once the shares are bought back, they will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Motivations for share buybacks include companies trying to align stock valuations with balance sheet objectives or employee compensation changes.

Share buyback 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.

As many companies approach their reporting date for 1Q15, last week’s buyback consideration was below the weekly average for the first quarter.

Source: SGX

For the fourth week of the month (20-24 April), there were a total of 20,023,700 shares repurchased by 10 stocks, with a total consideration of S\$5.4 million. This was an increase from the fourth week of April last year, which saw a total of 11,079,000 shares purchased by two stocks, with a total consideration of S\$2.2 million.

In the month-to-date, there were a total of 88,972,968 shares repurchased, with a total consideration of S\$51.7 million. This is down from a consideration of S\$54.0 million in the first four weeks of April last year.

The five stocks with the largest consideration in buybacks last week were OSIM International, USP Group, Hotung Investment Holdings, FSL Trust Management and BreadTalk Group.

The table below provides specific details of the largest consideration in buybacks for last week. The table is sorted by the total consideration amount from 20 April to 24 April 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 authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares which have been repurchased under the mandate are also provided.

Name Start Date Mandate Total no of shares purchased: 20-24 Apr Total Consideration: 20-24 Apr S\$ Cum no of shares purchased to date Percent*
OSIM INTERNATIONAL 31/03/2015 77,915,153 1,506,100 2,836,259.20 5,166,100 0.67
USP GROUP 27/02/2015 67,012,023 10,470,200 993,461.39 47,622,000 7.11
HOTUNG INVESTMENT HLDGS 29/04/2014 101,242,278 4,265,200 667,795.08 12,747,400 1.26
FSL TRUST MANAGEMENT 30/04/2014 65,466,507 2,889,400 505,620.68 6,017,200 0.92
BREADTALK GROUP 22/04/2015 28,183,724 147,000 202,805.67 147,000 0.05
PACIFIC CENTURY REGIONAL DEVELOPMENTS 28/04/2014 304,319,210 387,000 141,617.74 304,319,200 10.00
GLOBAL PALM RESOURCES HOLDINGS 23/04/2015 41,296,800 248,100 49,485.73 4,893,600 1.19
GP INDUSTRIES 30/07/2014 49,629,448 46,200 32,131.59 9,304,300 1.87
COURTS ASIA 30/07/2014 55,573,910 19,000 8,391.36 18,171,200 3.27
CHOSEN HOLDINGS 28/10/2014 28,391,842 45,500 7,234.41 1,577,000 0.56

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

OSIM International

On 31 March 2015, a share buyback resolution was passed for OSIM International. In the fourth week of April, OSIM International repurchased a total number of 1,506,100 shares with a total consideration of S\$2,836,259.20.

The maximum number of shares authorised for the buyback transaction was 77,915,153. As of end of last week, by way of acquisition, OSIM International had purchased a cumulative amount of 5,166,100 shares under the 31 March 2015 resolution. This represented 0.67% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 20 April 2015, the number of issued shares excluding treasury shares stood at 767,516,856 and the number of treasury shares held after purchase stood at 11,634,673.

USP Group

On 27 February 2015, a share buyback resolution was passed for USP Group. In the fourth week of April, USP Group repurchased a total number of 10,470,200 shares with a total consideration of S\$993,461.39.

The maximum number of shares authorised for the buyback transaction was 67,012,023. As of end of last week, by way of acquisition, USP Group had purchased a cumulative amount of 47,622,000 shares under the 27 February 2015 resolution. This represented 7.11% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 23 April 2015, the number of issued shares excluding treasury shares stood at 622,498,238 and the number of treasury shares held after purchase stood at 47,622,000.

Hotung Investment Holdings

On 29 April 2014, a share buyback resolution was passed for Hotung Investment Holdings. In the fourth week of April, Hotung Investment Holdings repurchased a total number of 4,265,200 shares with a total consideration of S\$667,795.08.

The maximum number of shares authorised for the buyback transaction was 101,242,278. As of end of last week, by way of acquisition, Hotung Investment Holdings had purchased a cumulative amount of 12,747,400 shares under the 29 April 2014 resolution. This represented 1.26% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 23 April 2015, the number of issued shares excluding treasury shares stood at 999,675,383 and the number of treasury shares held after purchase stood at 46,931,400.

FSL Trust Management

On 30 April 2014, a share buyback resolution was passed for FSL Trust Management. In the fourth week of April, FSL Trust Management repurchased a total number of 2,889,400 shares with a total consideration of S\$505,620.68.

The maximum number of shares authorised for the buyback transaction was 65,466,507. As of end of last week, by way of acquisition, FSL Trust Management had purchased a cumulative amount of 6,017,200 shares under the 30 April 2014 resolution. This represented 0.92% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 24 April 2015, the number of issued shares excluding treasury shares stood at 648,647,877.

BreadTalk Group

On 22 April 2015, a share buyback resolution was passed for BreadTalk Group. In the fourth week of April, BreadTalk Group repurchased a total number of 147,000 shares with a total consideration of S\$202,805.67.

The maximum number of shares authorised for the buyback transaction was 28,183,724. As of end of last week, by way of acquisition, BreadTalk Group had purchased a cumulative amount of 147,000 shares under the 22 April 2015 resolution. This represented 0.05% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 24 April 2015, the number of issued shares excluding treasury shares stood at 281,690,248 and the number of treasury shares held after purchase stood at 202,990.