Jumbo Group to buy back 10% of shares at 26 cents each
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Jumbo Group will use Internal resources to finance the $16.7 million required to purchase shares under the equal access offer.
PHOTO: ST FILE
Yong Jun Yuan
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SINGAPORE - At the company’s annual general meeting held on Jan 19, Jumbo Group’s shareholders approved the renewal of its share buyback mandate.
In a bourse filing, the food and beverage player said that it will offer 26 cents in cash per share to buy back up to 10 per cent of the company’s 643,658,465 shares in issue.
The offer represents a 6.1 per cent discount to the average market price of the company’s shares over the last five market days before the offer was announced.
Under the equal access offer, each shareholder can accept to sell to the company up to 10 per cent of their shares.
It added that up to 7.5 million of the shares bought back will be held or dealt with as treasury shares, while the remainder will be cancelled.
Internal resources will be used to finance the $16.7 million required to purchase shares under the equal access offer, the company said.
For the year ended Sept 30, 2023, the company posted a net profit of $14.6 million, reversing a net loss of $91,000 over the same period a year earlier.
“The equal access offer provides shareholders who find it difficult to sell down a substantial portion of the shareholdings in the company as a result of the low trading volume in the shares with an opportunity to liquidate and realise their investment in the shares,” said Jumbo.
“This is an option which may not otherwise be readily available due to the low trading liquidity of the shares.”
Shares of Jumbo closed up 1.8 per cent, or 0.5 cent, to 28 cents on Jan 19, before the announcement was made. THE BUSINESS TIMES
