OREANDA-NEWS. November 05, 2015. There are two common motivations for a listed company to buy shares back from the open market – when they feel that their share price has been undervalued or simply to facilitate employee share option schemes.   The former is typically cited when the share price reaches levels that are seen to provide good value for company capital. The latter will be of particular relevance amidst tight labour markets where companies offer share bonuses to employees.

The Buy-back Process

Shareholders’ approval must have been obtained for the share buy-back scheme with the price restrictions and size clearly set out in the circular seeking shareholders’ approval. Share buy-backs are also subject to Section 76C of the Companies Act, Chapter 50. The purchase price is subject to price restrictions as approved by shareholders at the Annual General Meeting, as the case may be.  The purchase price is subject to a limit of 105% of the average closing price for market purchase; and 120% of the average closing price in the case of off-market purchases pursuant to an equal access scheme.  Companies should check the definition of the average closing price as set out in the circular to shareholders. Share buy-back is valid for the period from the date of shareholders’ approval to the date on which the next annual general meeting is held or date when the mandate is fully utilised or revoked or varied (if applicable).

Share buy-back mandates and 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 (click here).

Total Share Buybacks October 2014 – October 2015

Source: SGX

Recent Buy-backs

In the month of October 2015, there were a total of 192,812,300 shares repurchased by 28 stocks, with a total consideration of S\\$127.2 million.

The five stocks with the largest considerations in buybacks in the month of October 2015 were Sinarmas Land, Osim International, DBS Group Holdings, Silverlake Axis and Global Logistic Properties.

The table below is sorted by the total consideration amount in buybacks in the month of October, 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 companies that issued shares that have been repurchased under the mandate, are also provided.

Name Start Date Mandate Total no of shares purchased: October Total Consideration: October S\\$ Cum no of shares purchased to date Percent*
SINARMAS LAND 24/04/2015 304,195,943 141,569,800 80,779,677.87 293,456,700 9.65
OSIM INTERNATIONAL 31/03/2015 77,915,153 8,608,600 12,496,503.45 27,748,200 3.72
DBS GROUP HOLDINGS 23/04/2015 24,787,928 600,000 9,789,423.49 11,815,800 0.48
SILVERLAKE AXIS 27/10/2014 224,474,911 11,769,100 7,205,923.09 89,810,700 4.00
GLOBAL LOGISTIC PROPERTIES 29/07/2015 484,420,322 2,586,900 5,358,745.91 105,213,600 2.17
GOODLAND GROUP 29/01/2015 33,645,984 8,809,000 2,679,556.94 12,669,000 3.77
PACIFIC CENTURY REGIONAL DEVELOPMENTS 24/04/2015 273,887,290 4,188,200 1,851,646.55 74,390,600 2.72
TECHNICS OIL & GAS 30/01/2015 23,493,297 2,015,300 1,310,673.25 6,272,300 2.67
BUMITAMA AGRI 27/04/2015 175,753,184 1,500,900 1,246,314.62 2,255,300 0.13
RAFFLES EDUCATION CORPORATION 19/10/2015 101,620,523 2,455,800 696,815.43 42,083,400 4.14
COURTS ASIA 31/07/2015 53,734,662 1,575,400 620,905.83 9,849,000 1.83
HYFLUX 29/04/2015 80,687,669 724,500 502,808.84 7,491,700 0.93
SEMBCORP MARINE 17/04/2015 208,873,772 200,000 474,830.89 359,200 0.02
GP BATTERIES INTERNATIONAL 30/07/2015 16,360,725 492,500 440,768.53 3,525,200 2.15
NORDIC GROUP 29/04/2015 40,000,000 1,800,100 336,550.10 2,886,600 0.72
PACC OFFSHORE SERVICES HOLDINGS 27/04/2015 182,000,000 677,000 220,823.10 5,362,900 0.29
GP INDUSTRIES 30/07/2015 48,588,788 308,300 210,572.90 934,900 0.19
A-SONIC AEROSPACE 30/04/2015 17,876,807 691,900 168,967.17 1,200,900 0.67
CENTURION CORPORATION 28/04/2015 75,687,333 389,100 162,448.64 3,847,500 0.51
STRACO CORPORATION 29/04/2015 85,801,958 174,600 154,595.27 3,359,700 0.39
BOUSTEAD SINGAPORE 30/07/2015 51,865,611 140,200 119,410.85 140,200 0.03
BRC ASIA 23/01/2015 18,772,168 164,500 116,478.86 1,148,000 0.61
TIONG SENG HOLDINGS 24/04/2015 45,962,384 450,000 100,789.07 566,000 0.12
FSL TRUST MANAGEMENT PTE. 29/04/2015 64,864,787 500,000 85,148.39 8,954,900 1.38
GLOBAL PALM RESOURCES HOLDINGS 23/04/2015 40,807,440 240,200 38,250.62 935,400 0.23
AEM HOLDINGS 28/04/2015 4,434,768 79,400 21,634.44 30,000 0.07
TREK 2000 INTERNATIONAL 24/04/2015 29,711,692 61,000 17,903.98 611,800 0.21
VIKING OFFSHORE AND MARINE 28/04/2015 79,278,819 40,000 2,128.00 2,172,800 0.27

Source: SGX (data is for the time period of 1 October 2015 to 31 October 2015)
*percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolution

Sinarmas Land

On 24 April 2015, a share buyback resolution was passed for Sinarmas Land. In the month of October 2015, Sinarmas Land repurchased a total number of 141,569,800 shares with a total consideration of S\\$80,779,677.87.

The maximum number of shares authorised for the buyback transaction was 304,195,943. As of end of last week, by way of acquisition, Sinarmas Land had purchased a cumulative amount of 293,456,700 shares under the 24 April 2015 resolution. This represented 9.65% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.                              

As of 31 October 2015, the number of issued shares excluding treasury shares stood at 2,748,502,737 and the number of treasury shares held after purchase stood at 293,456,700.

Osim International

On 31 March 2015, a share buyback resolution was passed for Osim International. In the month of October 2015, Osim International repurchased a total number of 8,608,600 shares with a total consideration of S\\$12,496,503.45.

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 27,748,200 shares under the 31 March 2015 resolution. This represented 3.72% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 October 2015, the number of issued shares excluding treasury shares stood at 744,934,756 and the number of treasury shares held after purchase stood at 34,216,773.

DBS Group Holdings

On 23 April 2015, a share buyback resolution was passed for DBS Group Holdings. In the month of October 2015, DBS Group Holdings  repurchased a total number of 600,000 shares with a total consideration of S\\$9,789,423.49.

The maximum number of shares authorised for the buyback transaction was 24,787,928. As of end of last week, by way of acquisition, DBS Group Holdings had purchased a cumulative amount of 11,815,800 shares under the 23 April 2015 resolution. This represented 0.48% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 October 2015, the number of issued shares excluding treasury shares stood at 2,502,280,749 and the number of treasury shares held after purchase stood at 12,500,000.

Silverlake Axis

On 27 October 2014, a share buyback resolution was passed for Silverlake Axis. In the month of October 2015, Silverlake Axis  repurchased a total number of 11,769,100 shares with a total consideration of S\\$7,205,923.09.

The maximum number of shares authorised for the buyback transaction was 224,474,911. As of end of last week, by way of acquisition, Silverlake Axis had purchased a cumulative amount of 89,810,700 shares under the 27 October 2014 resolution. This represented 4.00% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 October 2015, the number of issued shares excluding treasury shares stood at 2,665,912,100 and the number of treasury shares held after purchase stood at 30,560,700.

Global Logistics Properties

On 29 July 2015, a share buyback resolution was passed for Global Logistic Properties. In the month of October 2015, Global Logistic Properties repurchased a total number of 2,586,900 shares with a total consideration of S\\$5,358,745.91.

The maximum number of shares authorised for the buyback transaction was 484,420,322. As of end of last week, by way of acquisition, Global Logistic Properties had purchased a cumulative amount of 105,213,600 shares under the 29 July 2015 resolution. This represented 2.17% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 October 2015, the number of issued shares excluding treasury shares stood at 4,739,151,622 and the number of treasury shares held after purchase stood at 105,213,600.