OREANDA-NEWS. 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.

Total Share Buybacks November 2014 – November 2015

Recent Buy-backs

In the month of November 2015, there were a total of 41,861,346 shares repurchased by 26 stocks, with a total consideration of S$44.7 million.

The five stocks with the largest considerations in buybacks in the month of November 2015 were Oversea-Chinese Banking Corporation, Hyflux, United Overseas Bank, Osim International and Singapore Technologies Engineering.

The table below is sorted by the total consideration amount in buybacks in the month of November, 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: November Total Consideration: November S$ Cum no of shares purchased to date Percent*
OVERSEA-CHINESE BANKING CORPORATION 28/04/2015 199,084,946 1,400,000 12,584,765.81 5,820,000 0.15
HYFLUX 29/04/2015 80,687,669 14,100,000 9,017,151.79 21,591,700 2.68
UNITED OVERSEAS BANK 24/04/2015 80,108,293 268,146 5,242,640.14 268,146 0.02
OSIM INTERNATIONAL 31/03/2015 77,915,153 3,341,200 4,648,071.02 31,089,400 4.19
SINGAPORE TECHNOLOGIES ENGINEERING 23/04/2015 62,188,890 962,300 2,835,920.78 9,716,500 0.31
GOODLAND GROUP 29/01/2015 33,645,984 9,345,000 2,599,606.21 22,014,000 6.54
SIA ENGINEERING COMPANY 24/07/2015 22,465,323 565,100 2,053,749.70 565,100 0.05
WING TAI HOLDINGS 28/10/2015 78,160,806 725,300 1,224,908.13 725,300 0.09
COURTS ASIA 31/07/2015 53,734,662 2,378,500 914,360.34 12,225,500 2.28
GP BATTERIES INTERNATIONAL 30/07/2015 16,360,725 734,600 678,671.11 4,259,800 2.60
LUM CHANG HOLDINGS 30/10/2015 38,403,390 1,261,000 464,204.15 1,261,000 0.33
SEMBCORP MARINE 17/04/2015 208,873,772 200,000 460,553.73 559,200 0.03
PACC OFFSHORE SERVICES HOLDINGS 27/04/2015 182,000,000 1,333,900 449,868.20 6,696,800 0.37
PACIFIC CENTURY REGIONAL DEVELOPMENTS 24/04/2015 273,887,290 842,000 364,259.83 75,232,600 2.75
FSL TRUST MANAGEMENT 29/04/2015 64,864,787 1,759,000 306,396.66 10,713,900 1.65
CENTURION CORPORATION 28/04/2015 75,687,333 603,700 244,221.75 4,451,200 0.59
DEL MONTE PACIFIC 28/08/2015 97,201,770 523,400 154,817.18 821,300 0.04
TREK 2000 INTERNATIONAL 24/04/2015 29,711,692 330,400 99,945.01 942,200 0.32
A-SONIC AEROSPACE 30/04/2015 17,876,807 448,700 98,490.99 1,649,600 0.92
NORDIC GROUP 29/04/2015 40,000,000 346,400 65,834.96 3,233,000 0.81
BRC ASIA 23/01/2015 18,772,168 72,000 50,042.36 1,220,000 0.65
VALUETRONICS HOLDINGS 24/07/2015 37,472,625 100,000 42,602.00 100,000 0.03
TIONG SENG HOLDINGS 24/04/2015 45,962,384 126,500 30,337.33 692,500 0.15
LH GROUP 02/11/2015 1,578,292 47,500 19,885.31 47,500 0.30
POWERMATIC DATA SYSTEMS 24/07/2014 3,480,262 15,900 15,091.44 317,460 0.91
AEM HOLDINGS 28/04/2015 4,434,768 30,800 8,506.82 12,000 0.03

Oversea-Chinese Banking Corporation

On 28 April 2015, a share buyback resolution was passed for Oversea-Chinese Banking Corporation. In the month of November 2015, Oversea-Chinese Banking Corporation repurchased a total number of 1,400,000 shares with a total consideration of S$12,584,765.81.

The maximum number of shares authorised for the buyback transaction was 199,084,946. As of 30 Nov 2015, by way of acquisition, Oversea-Chinese Banking Corporation had purchased a cumulative amount of 5,820,000 shares under the 28 April 2015 resolution. This represented 0.15% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 30 November, the number of issued shares excluding treasury shares stood at 4,115,123,738 and the number of treasury shares held after purchase stood at 6,437,629.

Hyflux

On 29 April 2015, a share buyback resolution was passed for Hyflux. In the month of November 2015, Hyflux repurchased a total number of 14,100,000 shares with a total consideration of S$9,017,151.79.

The maximum number of shares authorised for the buyback transaction was 80,687,669. As of 30 Nov 2015, by way of acquisition, Hyflux had purchased a cumulative amount of 21,591,700 shares under the 29 April 2015 resolution. This represented 2.68% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 30 November, the number of issued shares excluding treasury shares stood at 785,284,989 and the number of treasury shares held after purchase stood at 79,246,000.

United Overseas Bank

On 24 April 2015, a share buyback resolution was passed for United Overseas Bank. In the month of November 2015, United Overseas Bank repurchased a total number of 268,146 shares with a total consideration of S$5,242,640.14.

The maximum number of shares authorised for the buyback transaction was 80,108,293. As of 30 Nov 2015, by way of acquisition, United Overseas Bank had purchased a cumulative amount of 268,146 shares under the 24 April 2015 resolution. This represented 0.02% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 30 November, the number of issued shares excluding treasury shares stood at 1,602,047,518 and the number of treasury shares held after purchase stood at 12,496,436.

Osim International

On 31 March 2015, a share buyback resolution was passed for Osim International. In the month of November 2015, Osim International repurchased a total number of 3,341,200 shares with a total consideration of S$4,648,071.02.

The maximum number of shares authorised for the buyback transaction was 77,915,153. As of 30 Nov 2015, by way of acquisition, Osim International had purchased a cumulative amount of 31,089,400 shares under the 31 March 2015 resolution. This represented 4.19% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 30 November, the number of issued shares excluding treasury shares stood at 741,593,556 and the number of treasury shares held after purchase stood at 37,557,973.

Singapore Technologies Engineering

On 23 April 2015, a share buyback resolution was passed for Singapore Technologies Engineering. In the month of November 2015, Singapore Technologies Engineering repurchased a total number of 962,300 shares with a total consideration of S$2,835,920.78.

The maximum number of shares authorised for the buyback transaction was 62,188,890. As of 30 Nov 2015, by way of acquisition, Singapore Technologies Engineering had purchased a cumulative amount of 9,716,500 shares under the 23 April 2015 resolution. This represented 0.31% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 30 November, the number of issued shares excluding treasury shares stood at 3,102,560,949 and the number of treasury shares held after purchase stood at 19,934,248.