HRnetGroup establishes S$30m share buyback programme

HRNETGROUP intends to buy back up to S$30 million of its shares under its new buyback programme, it said in a bourse filing on Monday (Jun 13).

The programme allows the recruitment company to purchase up to 10 per cent of its issued shares when they are undervalued due to market conditions. This means HRnetGroup can buy back up to 100.4 million shares via market purchases.

The group said it will hold the repurchased shares as treasury shares which could be used for employee share plans and also as possible currency for merger and acquisition activities.

“As the group embarks on acquisitions, using shares as acquisition currency would help align the interests of co-owners of acquired businesses with that of the group,” HRnetGroup added.

It noted that the share buyback programme could take more than a year, depending on the prices at which the shares are purchased.

HRnetGroup closed 0.7 per cent or S$0.005 lower at S$0.74 on Friday.