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 January 2015 – December 2015

Recent Buy-backs

In the month of December 2015, there were a total of 67,681,884 shares repurchased by 38 stocks, with a total consideration of S$63.1 million.

The five stocks with the largest considerations in buybacks in the month of December 2015 were United Overseas Bank, PEC, DBS Group Holdings, Oversea-Chinese Banking Corporation and Pacific Century Regional Developments.

The table below is sorted by the total consideration amount in buybacks in the month of December, 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: December Total Consideration: December S$ Cum no of shares purchased to date Percent*
UNITED OVERSEAS BANK 24/04/2015 80,108,293 659,684 12,735,484.58 927,830 0.06
PEC 13/11/2015 25,425,700 424,900 12,172,444.16 424,900 0.17
DBS GROUP HOLDINGS 23/04/2015 24,787,928 500,000 8,188,822.65 12,315,800 0.50
OVERSEA-CHINESE BANKING CORPORATION 28/04/2015 199,084,946 750,000 6,536,946.06 6,570,000 0.17
PACIFIC CENTURY REGIONAL DEVELOPMENTS 24/04/2015 273,887,290 11,084,500 4,831,631.38 86,317,100 3.15
GCCP RESOURCES 30/09/2015 119,343,293 33,400,000 4,279,217.44 33,400,000 2.80
SINGAPORE TECHNOLOGIES ENGINEERING 23/04/2015 62,188,890 1,034,400 3,003,659.45 10,750,900 0.35
SIA ENGINEERING COMPANY 24/07/2015 22,465,323 634,400 2,271,596.02 1,199,500 0.11
SEMBCORP INDUSTRIES 21/04/2015 35,732,431 458,100 1,418,799.35 1,700,000 0.10
Q & M DENTAL GROUP (SINGAPORE) 28/04/2015 77,862,349 1,640,800 1,151,354.33 1,038,200 0.13
STRACO CORPORATION 29/04/2015 85,801,958 1,140,000 965,776.97 4,499,700 0.52
GP BATTERIES INTERNATIONAL 30/07/2015 16,360,725 860,600 800,802.98 5,120,400 3.13
GOODLAND GROUP 29/01/2015 33,645,984 2,215,000 599,719.38 24,229,000 7.20
KINGSMEN CREATIVES 30/04/2015 19,455,326 825,000 523,975.09 825,000 0.42
A-SONIC AEROSPACE 30/04/2015 17,876,807 1,467,100 391,013.16 3,116,700 1.74
LUM CHANG HOLDINGS 30/10/2015 38,403,390 1,052,000 390,628.32 2,313,000 0.60
SEMBCORP MARINE 17/04/2015 208,873,772 200,000 380,323.25 759,200 0.04
WING TAI HOLDINGS 28/10/2015 78,160,806 187,200 317,079.08 912,500 0.12
NORDIC GROUP 29/04/2015 40,000,000 1,436,200 268,528.03 4,669,200 1.17
LIBRA GROUP 05/08/2015 11,926,900 1,769,900 256,158.08 1,769,900 1.48
CENTURION CORPORATION 28/04/2015 75,687,333 620,200 244,006.72 5,071,400 0.67
PACC OFFSHORE SERVICES HOLDINGS 27/04/2015 182,000,000 597,800 186,503.83 7,294,600 0.40
COURTS ASIA 31/07/2015 53,734,662 467,400 179,693.59 12,692,900 2.36
GP INDUSTRIES 30/07/2015 48,588,788 188,300 126,539.38 1,123,200 0.23
TIONG SENG HOLDINGS 24/04/2015 45,962,384 396,000 95,202.72 1,088,500 0.24
LH GROUP 02/11/2015 1,578,292 161,200 84,324.97 208,700 1.32
VALUETRONICS HOLDINGS 24/07/2015 37,472,625 200,000 82,196.80 300,000 0.08
PACIFIC RADIANCE 28/04/2015 72,575,501 271,400 81,611.67 3,681,000 0.51
FSL TRUST MANAGEMENT PTE. 29/04/2015 64,864,787 477,400 81,093.77 11,191,300 1.73
SOUP RESTAURANT GROUP 30/04/2015 28,560,700 391,000 73,641.97 2,475,200 0.87
BRC ASIA 23/01/2015 18,772,168 101,000 71,043.02 1,321,000 0.70
TREK 2000 INTERNATIONAL 24/04/2015 29,711,692 212,300 64,102.16 1,154,500 0.39
IMPERIUM CROWN 28/10/2015 49,000,000 1,000,000 58,148.95 1,000,000 0.20
POH TIONG CHOON LOGISTICS 30/04/2015 21,402,940 79,900 57,945.56 778,400 0.36
ENGRO CORPORATION 28/04/2015 11,868,350 56,000 57,092.85 56,000 0.05
AEM HOLDINGS 28/04/2015 4,434,768 151,000 39,625.66 307,000 0.69
POWERMATIC DATA SYSTEMS 24/07/2014 3,480,262 42,100 38,467.50 359,560 1.03
HG METAL MANUFACTURING 23/04/2015 38,485,618 529,100 21,160.80 23,797,100 1.86

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

United Overseas Bank

On 24 April 2015, a share buyback resolution was passed for United Overseas Bank. In the month of December 2015, United Overseas Bank repurchased a total number of 659,684 shares with a total consideration of S$12,735,484.58.

The maximum number of shares authorised for the buyback transaction was 80,108,293. As of end of last week, by way of acquisition, United Overseas Bank had purchased a cumulative amount of 927,830 shares under the 24 April 2015 resolution. This represented 0.06% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 December 2015, the number of issued shares excluding treasury shares stood at 1,602,262,855 and the number of treasury shares held after purchase stood at 12,281,099.

PEC

On 13 November 2015, a share buyback resolution was passed for PEC. In the month of December 2015, PEC repurchased a total number of 424,900 shares with a total consideration of S$12,172,444.16.

The maximum number of shares authorised for the buyback transaction was 25,425,700. As of end of last week, by way of acquisition, PEC had purchased a cumulative amount of 424,900 shares under the 13 November 2015 resolution. This represented 0.17% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 December 2015, the number of issued shares excluding treasury shares stood at 253,832,100 and the number of treasury shares held after purchase stood at 1,327,900.

DBS Group Holdings

On 23 April 2015, a share buyback resolution was passed for DBS Group Holdings. In the month of December 2015, DBS Group Holdings repurchased a total number of 500,000 shares with a total consideration of S$8,188,822.65.

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 12,315,800 shares under the 23 April 2015 resolution. This represented 0.50% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 December 2015, the number of issued shares excluding treasury shares stood at 2,501,780,749 and the number of treasury shares held after purchase stood at 13,000,000.

Oversea-Chinese Banking Corporation

On 28 April 2015, a share buyback resolution was passed for Oversea-Chinese Banking Corporation. In the month of December 2015, Oversea-Chinese Banking Corporation repurchased a total number of 750,000 shares with a total consideration of S$6,536,946.06.

The maximum number of shares authorised for the buyback transaction was 199,084,946. As of end of last week, by way of acquisition, Oversea-Chinese Banking Corporation had purchased a cumulative amount of 6,570,000 shares under the 28 April 2015 resolution. This represented 0.17% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 December 2015, the number of issued shares excluding treasury shares stood at 4,115,464,081 and the number of treasury shares held after purchase stood at 6,097,286.

Pacific Century Regional Developments

On 24 April 2015, a share buyback resolution was passed for Pacific Century Regional Developments. In the month of December 2015, Pacific Century Regional Developments repurchased a total number of 11,084,500 shares with a total consideration of S$4,831,631.38.

The maximum number of shares authorised for the buyback transaction was 273,887,290. As of end of last week, by way of acquisition, Pacific Century Regional Developments had purchased a cumulative amount of 86,317,100 shares under the 24 April 2015 resolution. This represented 3.15% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 December 2015, the number of issued shares excluding treasury shares stood at 2,652,555,800 and the number of treasury shares held after purchase stood at 0.