Hong Fok says no privatisation or delisting of company planned

PROPERTY Group Hong Fok Corporation, whose shares have spiked on a bullish commentary in The Straits Times (ST), on Monday evening said that contrary to what was written in the article, there was no current intention by the board to explore or undertake any privatisation or delisting.

It said that 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.

"These share purchases have provided the company with an efficient mechanism to enhance return to shareholders when circumstances permit," it 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.

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The ST article had highlighted the company's share buybacks at a steep discount to its net asset value[THE CHEONGS] and noted that its controlling shareholders would need to buy just 151 million shares to trigger a privatisation.

Hong Fok shares closed flat at S$1 on Monday, as 17.2 million shares changed hands. They have spiked more than 40 per cent from March 24's closing of S$0.71.