138
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
APPENDIX
(iv)
number of treasury shares before and after such sale, transfer, cancellation and/or use;
(v)
percentage of the number of treasury shares against the total number of Shares outstanding
before and after such sale, transfer, cancellation and/or use; and
(vi)
value of the treasury shares if they are used for a sale or transfer, or cancelled.
2.8 Source of Funds
The Company may only apply funds for the purchase or acquisition of the Shares as provided in the
Articles and in accordance with the applicable laws in Singapore. The Company may not purchase
its Shares for a consideration other than in cash or, in the case of a Market Purchase, for settlement
otherwise than in accordance with the trading rules of the SGX-ST.
The Company intends to use internal sources of funds or external borrowings or a combination of
both to finance the Company’s purchase or acquisition of the Shares pursuant to the Share Purchase
Mandate.
2.9 Financial Effects
It is not possible for the Company to realistically calculate or quantify the impact of purchases or
acquisitions of Shares that may be made pursuant to the Share Purchase Mandate on the NTA and
EPS as the resultant effect would depend on,
inter alia
, the aggregate number of Shares purchased
or acquired, whether the purchase or acquisition is made out of capital or profits, the purchase prices
paid for such Shares and the amount (if any) borrowed by the Company to fund the purchases or
acquisitions and whether the Shares purchased or acquired are cancelled or held as treasury shares.
The Company’s total issued share capital will be diminished by the total number of the Shares
purchased by the Company and which are cancelled. The NTA of the Group will be reduced by the
aggregate purchase price paid by the Company for the Shares.
Under the Companies Act, as amended by the Companies Amendment Act 2005, purchases or
acquisitions of Shares by the Company may be made out of the Company’s capital or profits so
long as the Company is solvent. Where the consideration paid by the Company for the purchase
or acquisition of Shares is made out of profits, such consideration (excluding related expenses) will
correspondingly reduce the amount available for the distribution of cash dividends by the Company.
Where the consideration paid by the Company for the purchase or acquisition of Shares is made
out of capital, the amount available for the distribution of cash dividends by the Company will not
be reduced. For the purposes of the Share Purchase Mandate, it is intended that purchases or
acquisitions of the Shares by the Company, if any, will be made out of the Company’s capital and
the foregoing has been assumed in the preparation of the financial effects illustrated below.
