Yahoo Finance Seatrium to establish $100 mil share buyback programme
Depending on the prices at which the shares are repurchased, the buyback programme could take more than a year to be completed.
Seatrium, on April 29, announced that it has established a $100 million share buyback programme.
The buyback programme will be funded out of existing cash. According to Seatrium, the shares repurchased will be held as treasury shares. The treasury shares will, in turn, be deployed for Seatrium’s existing employee share plans. They will also be used to pay the share component of the directors’ fees or cancelled against the group’s share capital to increase shareholder returns.
“Taking into consideration Seatrium’s improved financial position as well as capital requirements for future growth plans, the share buyback programme provides for a systematic share purchase approach that signals the group’s commitment to further align its interest with shareholders,” says Seatrium in its announcement.
The buyback programme will come under the share purchase mandate, which was approved by Seatrium’s shareholders at its annual general meeting (AGM) on April 26. The mandate allows the group to buy back up to a maximum of 2% of its total issued shares subject to the parameters and guidelines.
Depending on the prices at which the shares are repurchased, the $100 million share buyback programme could take more than a year to be completed.
In a separate announcement, the record date for Seatrium’s 20-to-1 share consolidation is on May 8.
Shares in Seatrium closed at 8.9 cents on April 26.
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