Hot stock: OUE up 13.3% on share buyback offer
Each shareholder is entitled to sell 10 per cent of their total owned shares at S$1.25 apiece
SHARES of OUE rose as much as 13.3 per cent in Tuesday’s (May 21) early trading, following the property developer’s announcement of an off-market equal access offer at S$1.25 apiece after the market closed on Monday.
As at 9.05 am, the counter was up S$0.14 to S$1.19 with 256,000 shares changing hands. The last time it closed near this level was last December. The counter later closed at S$1.15, up 9.5 per cent or S$0.10.
OUE proposed the off-market purchase of up to 84 million shares, or about 10 per cent of its shares in issue as at Apr 26 – the day the group’s share purchase mandate was approved.
Each shareholder will be entitled to sell 10 per cent of their total number of shares held in their own name.
The offer price of S$1.25 represents a 20 per cent premium over the average of the last dealt prices of the share over the last five consecutive market days on the Singapore Exchange.
OUE will commit up to S$105.1 million, funded through internal resources or external borrowings, assuming it buys back the maximum number of shares available, said the company.
The offer will close at 5.30 pm on the record date of Jun 27, based on an indicative timeline.
