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.

February is traditionally a less active month for share buybacks with company reporting taking precedence. Between January and March approximately two-thirds of the FTSE ST All Share Index constituents are reporting full 2015 financial year earnings.

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 February 2015 – February 2016

Recent Buybacks

In the month of February 2016, there were a total of 31,002,355 shares repurchased by 34 stocks, with a total consideration of S$37.9 million. This compared to S$41.9 million in February 2015 and S$80.9 million in January 2016.

The five stocks with the largest considerations in buybacks in the month of February 2016 were Wing Tai Holdings, SATS, Singapore Exchange, Oversea-Chinese Banking Corporation and Silverlake Axis.

The table below is sorted by the total consideration amount in buybacks in the month of 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 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: February Total Consideration: February S$ Cum No of Shares Purchased to Date Percent*
WING TAI HOLDINGS 28/10/2015 78,160,806 4,680,100 7,143,863.75 8,182,700 1.05
SATS 21/07/2015 22,202,522 1,850,800 7,099,649.87 2,418,400 0.22
SINGAPORE EXCHANGE 23/09/2015 107,164,240 863,800 6,033,680.00 863,800 0.08
OVERSEA-CHINESE BANKING CORPORATION 28/04/2015 199,084,946 750,000 6,001,233.44 8,900,000 0.22
SILVERLAKE AXIS 26/10/2015 267,892,880 5,300,000 2,994,178.16 103,160,700 3.85
KEPPEL CORPORATION 17/04/2015 90,850,197 300,000 1,540,404.08 7,108,000 0.39
SINGAPORE TELECOMMUNICATIONS 21/07/2015 797,178,847 313,055 1,173,175.11 313,055 0.00
SEMBCORP INDUSTRIES 21/04/2015 35,732,431 360,000 942,465.83 2,060,000 0.12
LIAN BENG GROUP 30/09/2015 50,448,960 1,604,100 727,095.95 1,604,100 0.32
M1 13/04/2015 93,496,728 241,100 601,689.20 241,100 0.03
OXLEY HOLDINGS 28/10/2015 147,410,998 1,434,800 586,893.18 1,434,800 0.05
RAFFLES EDUCATION CORPORATION 19/10/2015 97,412,093 1,938,900 437,505.32 8,615,800 0.88
GOODLAND GROUP 29/01/2015 33,645,984 1,620,000 419,573.11 30,284,800 9.00
LUM CHANG HOLDINGS 30/10/2015 38,403,390 917,800 336,539.68 4,828,600 1.26
GKE CORPORATION 30/10/2015 64,112,529 3,979,200 331,722.48 5,923,400 0.92
SIA ENGINEERING COMPANY 24/07/2015 22,465,323 68,300 236,142.74 1,582,600 0.14
KARIN TECHNOLOGY HLDGS 23/02/2016 21,441,000 826,500 226,774.92 826,500 0.39
VALUETRONICS HOLDINGS 24/07/2015 37,472,625 425,400 159,907.86 925,400 0.25
COURTS ASIA 31/07/2015 53,734,662 488,100 157,065.37 13,655,000 2.54
JAPAN FOODS HOLDING 21/07/2015 17,400,600 396,400 153,350.09 396,400 0.23
CENTURION CORPORATION 28/04/2015 75,687,333 369,800 135,256.29 6,817,300 0.90
ISOTEAM 27/10/2015 14,293,329 400,000 126,099.40 3,000,000 2.10
COMBINE WILL INTL HLDGS 28/04/2015 3,280,000 144,000 89,669.00 144,400 0.44
BRC ASIA 28/01/2016 18,662,428 109,300 68,729.83 1,446,700 0.78
TIONG SENG HOLDINGS 24/04/2015 45,962,384 210,300 47,398.53 1,563,800 0.34
VIKING OFFSHORE AND MARINE 28/04/2015 79,278,819 952,200 35,169.00 3,125,000 0.39
KSH HOLDINGS 24/07/2015 41,271,630 70,000 35,117.97 5,338,400 1.29
PACC OFFSHORE SERVICES HOLDINGS 27/04/2015 182,000,000 109,800 31,476.93 8,014,900 0.44
GLOBAL PALM RESOURCES HOLDINGS 23/04/2015 20,403,720 100,000 25,747.91 1,121,900 0.55
SIN HENG HEAVY MACHINERY 28/10/2015 11,476,880 50,000 22,552.97 50,000 0.04
AEM HOLDINGS 28/04/2015 4,434,768 15,600 5,020.89 599,600 1.36
CHASEN HOLDINGS 29/07/2015 29,197,929 100,000 3,144.13 230,000 0.08
KOH BROTHERS GROUP 29/04/2015 41,634,090 10,000 2,833.29 1,370,900 0.33
GP BATTERIES INTERNATIONAL 30/07/2015 16,360,725 3,000 2,344.76 5,387,800 3.29

Wing Tai Holdings

On 28 October 2015, a share buyback resolution was passed for Wing Tai Holdings. In the month of February 2016, Wing Tai Holdings repurchased a total number of 4,680,100 shares with a total consideration of S$7,143,863.75.

The maximum number of shares authorised for the buyback transaction was 78,160,806. As of 29 February 2016, by way of acquisition, Wing Tai Holdings had purchased a cumulative amount of 8,182,700 shares under the 28 October 2015 resolution. This represented 1.05% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 29 February 2016, the number of issued shares excluding treasury shares stood at 773,425,360 and the number of treasury shares held after purchase stood at 20,501,900.

SATS

On 21 July 2015, a share buyback resolution was passed for SATS. In the month of February 2016, SATS repurchased a total number of 1,850,800 shares with a total consideration of S$7,099,649.87.

The maximum number of shares authorised for the buyback transaction was 22,202,522. As of 29 February 2016, by way of acquisition, SATS had purchased a cumulative amount of 2,418,400 shares under the 21 July 2015 resolution. This represented 0.22% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 29 February 2016, the number of issued shares excluding treasury shares stood at 1,109,111,642 and the number of treasury shares held after purchase stood at 14,944,633.

Singapore Exchange

On 23 September 2015, a share buyback resolution was passed for Singapore Exchange. In the month of February 2016, Singapore Exchange repurchased a total number of 863,800 shares with a total consideration of S$6,033,680.

The maximum number of shares authorised for the buyback transaction was 107,164,240. As of 29 February 2016, by way of acquisition, Singapore Exchange had purchased a cumulative amount of 863,800 shares under the 23 September 2015 resolution. This represented 0.08% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 29 February 2016, the number of issued shares excluding treasury shares stood at 1,070,740,560 and the number of treasury shares held after purchase stood at 901,840.

Oversea-Chinese Banking Corporation

On 28 April 2015, a share buyback resolution was passed for Oversea-Chinese Banking Corporation. In the month of February 2016, Oversea-Chinese Banking Corporation repurchased a total number of 750,000 shares with a total consideration of S$6,001,233.44.

The maximum number of shares authorised for the buyback transaction was 199,084,946. As of 29 February 2016, by way of acquisition, Oversea-Chinese Banking Corporation had purchased a cumulative amount of 8,900,000 shares under the 28 April 2015 resolution. This represented 0.22% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 29 February 2016, the number of issued shares excluding treasury shares stood at 4,113,385,299 and the number of treasury shares held after purchase stood at 8,176,068.

Silverlake Axis

On 26 October 2015, a share buyback resolution was passed for Silverlake Axis. In the month of February 2016, Silverlake Axis repurchased a total number of 5,300,000 shares with a total consideration of S$2,994,178.16.

The maximum number of shares authorised for the buyback transaction was 267,892,880. As of 29 February 2016, by way of acquisition, Silverlake Axis had purchased a cumulative amount of 103,160,700 shares under the 26 October 2015 resolution. This represented 3.85% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 29 February 2016, the number of issued shares excluding treasury shares stood at 2,654,962,100 and the number of treasury shares held after purchase stood at 41,510,700.