OUE to buy back up to 84 million shares at S$1.25 apiece in off-market equal access offer
Offer price is 20% above average traded price over last five sessions
PROPERTY developer OUE on Monday (May 20) proposed undertaking an off-market purchase of its ordinary shares at S$1.25 apiece under an equal access scheme.
The offer price 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.
The company will buy back up to around 84 million shares, or about 10 per cent of its shares in issue as at Apr 26, 2024 – the day the group’s share purchase mandate was approved.
Assuming OUE buys back the maximum number of shares available, the company will commit S$105.1 million. This amount will be funded through internal resources or external borrowings, said the company.
The proposed offer is not expected to result in a material adverse effect on the working capital requirements and gearing of the company.
Each shareholder will be entitled to sell 10 per cent of their total number of shares held in their own name, the group said in a bourse filing.
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The offer will be open for acceptance by shareholders for 28 days from May 30, which is the day the acceptance form for shareholders will be dispatched. It will close at 5.30 pm on June 27, which is also the record date, based on an indicative timeline.
All shares purchased or acquired by the company in connection with the offer will be cancelled immediately on purchase.
OUE said that the offer is to reward shareholders for their loyalty and gives shareholders an “equitable opportunity” to realise a portion of their investments in the shares at a premium over recent market prices of the shares.
It also provides shareholders who find it difficult to sell a meaningful portion of their shareholdings in the company with an opportunity to realise a portion of their investments in the shares which may not otherwise be readily available due to their low trading liquidity.
The offer will also allow the company to enhance shareholders’ value by reducing the total number of shares in issue, thereby increasing the earnings per share and net asset value per share of the company.
OUE’s shares ended 0.9 per cent or S$0.01 lower at S$1.05 on Monday before the announcement.
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