StarHub launches S$50 million share buyback programme

TELCO StarHub has earmarked about S$50 million to repurchase up to 3 per cent of its issued share capital, or approximately 51.9 million shares.

In a bourse filing on Monday (Jun 26), the company said the move is in line with the group’s Dare+ objective to enhance long-term total shareholder returns.

It added that the programme will facilitate the return of excess cash to shareholders after considering factors such as the group’s short to mid-term capital requirements and cash flow trends, as well as its future growth plans and funding needs.

StarHub noted that it expects to continue generating healthy cash flows, despite earlier guidance that FY2022 and FY2023 would be heavy investment years.

“Longer term, StarHub’s business model is shifting as a result of Dare+, which will see significant capital expenditure to operating expenditure substitution,” it said.

The purchased shares will be held as treasury shares, and will be carried out under the share purchase mandate granted by shareholders at its 2023 extraordinary general meeting. The mandate allows the company to purchase up to 10 per cent of its issued shares.