SINGAPORE (THE BUSINESS TIMES) – Property Group Hong Fok Corporation, whose shares had spiked after a commentary in The Straits Times (ST), said on Monday evening (March 29) that there was no current intention by the board to explore or undertake any privatisation or delisting.
The ST article on March 25 had highlighted the company’s share buybacks at a steep discount to its net asset value and noted that its controlling shareholders would need to buy just 151 million shares to trigger a privatisation.
Hong Fok said it has been making purchases of shares in the company through on-market trades on the Singapore Exchange, under the share purchase mandate approved by shareholders at last year’s annual general meeting.
This was done “with the objective of enhancing the earnings-per-share of the company and its subsidiaries, better managing the company’s capital structure, dividend payout and cash reserves, as well as helping to buffer short-term share price volatility,” it said.
The company’s Monday statement was in response to Singapore Exchange queries.
“These share purchases have provided the company with an efficient mechanism to enhance return to shareholders when circumstances permit,” Hong Fok added.
All the share purchases are regulated and made in accordance with guidelines, which also provide that the company will not effect a share purchase such that the continuing shareholding spread requirement cannot be maintained.
“Directors will use their best efforts to ensure that any purchase of shares will not affect the listing of the shares on the SGX-ST,” it said.
Hong Fok shares closed flat at $1 on Monday, as 17.2 million shares changed hands. They have spiked more than 40 per cent from March 24’s closing of $0.71.
