A portion of it may be deployed for the firm's long-term incentive plans.
City Development (CDL) made its inaugural share buyback exercise with 300,000 shares priced at $9.485 apiece which totalled $2.85m, an announcement revealed.
The firm noted that the transaction was in accordance with CDL’s share purchase mandate renewed during their 55th annual general meeting on 25 April. According to the mandate, CDL has to buy back 300,000 shares at an average price of $9.485 which is a discount of 14.8% to the net asset value of $11.13 as of 30 June.
The price also represents approximately 0.03% of CDL’s issued share capital prior to the share buyback.
CDL said that the purchased shares will be held as treasury shares and a portion of it may be deployed for the company’s long-term incentive plans.
“We have repositioned our business for the next lap, with a focus on growth, enhancement and transformation,” CDL Group CEO Sherman Kwek commented. “Our robust balance sheet enables us to initiate our share buyback exercise to enhance returns for shareholders.”
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