Investor Centre – Share Buyback

Boustead Projects’ Share Buyback Mandate (Mandate) was approved by shareholders at an Extraordinary General Meeting held at the beginning of FY2017 and has been renewed annually ever since then. The Mandate authorises our purchase of shares according to the terms of the Mandate.

The rationale for our purchase of shares is as follows:

• To provide greater flexibility in managing capital and maximising return to shareholders. To the extent that we have capital and surplus funds which are in excess of our financial needs, taking into account our expansion and growth plans, the Mandate will facilitate the return to shareholders of surplus funds in a cost-efficient, effective and expedient manner;
• To improve our return on equity, thereby increasing shareholder value;
• To exercise control over our share structure with a view to enhance earnings per share and/or net tangible asset value per share;
• To mitigate short-term market volatility in our share price, offsetting the effects of short-term speculation and bolstering shareholders' confidence; and
• To enable our Board to utilise shares purchased and held as Treasury Shares to be sold for cash, transferred as consideration for acquisitions or issued to team members as a form of compensation, which may be less dilutive than if new shares were issued for this purpose.

We will only purchase shares pursuant to the Mandate if it can benefit us and our shareholders. No purchase of shares will be made in circumstances which would have or may have a material adverse effect on our liquidity and capital adequacy position as a whole and/or affect our listing status on the SGX. It should be noted that there is no assurance that the Mandate will achieve the desired effects and that such effects, if achieved, can be sustained in the longer term.