“Taking into consideration Seatrium’s improved financial position as well as capital requirements for future growth plans, the share buyback programme provides for a systematic share purchase approach that signals the group’s commitment to further align its interest with shareholders,” says Seatrium in its announcement.
The buyback programme will come under the share purchase mandate, which was approved by Seatrium’s shareholders at its annual general meeting (AGM) on April 26. The mandate allows the group to buy back up to a maximum of 2% of its total issued shares subject to the parameters and guidelines.
Depending on the prices at which the shares are repurchased, the $100 million share buyback programme could take more than a year to be completed.
In a separate announcement, the record date for Seatrium’s 20-to-1 share consolidation is on May 8.
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Shares in Seatrium closed at 8.9 cents on April 26.
