According to the company, the mandate will give it “greater flexibility” in managing its capital and maximising returns to its shareholders.
“The share purchase mandate will facilitate the return of excess cash and surplus funds to shareholders in an expedient, effective and cost-efficient manner,” says the company in its EGM circular dated Oct 6.
The share purchases also seek to enhance the company’s return on equity (ROE), adds the company.
“Shareholders should note that share purchases will be made only if the directors believe it can benefit the company and its shareholders. If and when circumstances permit, the directors will decide whether to effect such share purchases via on-market share purchases or off-market share purchases after taking into account the amount of cash available, the prevailing market conditions and the most cost-effective and efficient approach,” says NoonTalk via its circular.
See also: CDL to undertake off-market purchase of preference shares; makes offer at 78 cents apiece
“No share purchases will be made in circumstances which would have or may have a material adverse effect on the liquidity and capital adequacy position of the company and/or affect the listing status of the company,” it adds.
In the case of an on-market share purchase, the company may pay for up to 105% of the shares’ average closing price and up to 120% of the average closing price if the purchase is conducted off the market. The average closing price refers to the average of the closing market prices of a share over the last five market days recorded on the Singapore ExchangeSecurities Trading Limited (SGX-ST).
As at Oct 6, about 66.9 million shares – or 33.8% – of NoonTalk’s total issued share capital are held in the hands of the public.
In a separate filing, NoonTalk revealed that the audited results of its net cash generated from investing activities came up to $2.5 million from its unaudited results of a negative $49,512.
Net cash generated from financing activities stood at $894,703 in its audited results, down from the $3.4 million reported in its unaudited results.
Shares in NoonTalk closed flat at 9.8 cents on Oct 6.
