Valuetronics implements HK$250m share buyback programme

THE board of Valuetronics BN2 is proposing to use up to HK$250 million (S$43.5 million) in funds for a share buyback programme.

The integrated electronics manufacturing services provider is exercising the share buyback mandate granted by its shareholders at its annual general meeting held on Jul 26, 2021, it said in a bourse filing released on Monday (Feb 28).

The purchase mandate permits the company to buy up to 10 per cent of its shares from the open market for the duration of the mandate.

Shares of mainboard-listed Valuetronics were trading 2.9 per cent or S$0.015 higher at S$0.53 as at 10.24 am on Monday.

Valuetronics intends to finance the buyback using existing available cash reserves. This is while maintaining sufficient financial resources for the continued growth of its operations.

"The share buyback programme reflects the confidence of the board in the strength of the group's balance sheet, the long-term strategy and prospects of the company," it added.

The board also said that actively managing the capital structure and implementing the share buyback programme will "optimise the company's capital structure and overall shareholders' return".