The company wants to signal that its share price, at current levels, is undervalued. By buying back those shares, the number of Silverlake Axis shares in circulation will be reduced and will then have the effect of increasing the earnings per share.
“The equal access offer will also provide shareholders with an opportunity to realise their investments in the shares at a premium over recent market prices of the shares without incurring transaction costs,” states the company in its pre-market announcement on March 14.
Group executive chairman Goh Peng Ooi, who holds some 68.58% of the company, will not take part in the offer. As such, the minority shareholders can accept the offer for some 28.84% of the shares they own.
Silverlake Axis has reported earnings of RM59.6 million for its 2QFY2021 ended Dec, up 72% y-o-y. Revenue in the same period was up 29% y-o-y to RM206.5 million, led by higher software licensing revenue.
See also: Centurion’s executive director Loh acquires another 100,000 shares; total stake at 59.793%
For 1HFY2021 ended Dec 2021, earnings was up 40% y-o-y to RM94.7 million, while revenue was up 16% y-o-y to RM358.5 million.
Thus far this FY2022, more than RM300 million worth of new contracts have been closed, “far exceeding” the same time for both FY2020 and FY2021.
