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HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
APPENDIX
The Directors do not propose to exercise the Share Purchase Mandate to such an extent that it would
have a material adverse effect on the working capital requirements of the Group. The purchase or
acquisition of the Shares will only be effected after considering relevant factors such as the working
capital requirement, availability of financial resources, the expansion and investment plans of the
Group and the prevailing market conditions. The proposed Share Purchase Mandate will be exercised
with a view to enhance the earnings and/or the NTA value per Share of the Group.
For illustrative purposes only
, the financial effects of the Share Purchase Mandate on the Company
and the Group, based on the unaudited financial statements of the Group for the financial year ended
31 December 2014 are based on the assumptions set out below:
(a)
based on 1,282,853,962 Shares in issue (excluding treasury shares) and assuming that (i)
no further Shares are issued, and (ii) no Shares are held by the Company as treasury shares
on or prior to the AGM, not more than 38,485,618 Shares (representing three per cent. (3%)
of the total number of issued Shares (excluding treasury shares) as at that date) may be
purchased by the Company pursuant to the proposed Share Purchase Mandate;
(b)
in the case of Market Purchases by the Company and assuming that the Company purchases
or acquires the 38,485,618 Shares at the Maximum Price of S$0.058 for one (1) Share (being
the price equivalent to five per cent. (5%) above the Average Closing Price of the Shares for
the last five (5) consecutive Market Days on which the Shares were traded on the SGX-ST
immediately preceding the Latest Practicable Date), the maximum amount of funds required
for the purchase or acquisition of the 38,485,618 Shares (excluding related expenses) is
approximately S$2,239,000; and
(c)
in the case of Off-Market Purchases by the Company and assuming that the Company
purchases or acquires the 38,485,618 Shares at the Maximum Price of S$0.066 for one (1)
Share (being the price equivalent to twenty per cent. (20%) above the Average Closing Price
of the Shares on the five (5) consecutive Market Days on which the Shares were traded on
the SGX-ST immediately preceding the Latest Practicable Date), the maximum amount of
funds required for the purchase or acquisition of the 38,485,618 Shares (excluding related
expenses) is approximately S$2,559,000.
For illustrative purposes only
, and based on the assumptions set out in sub-paragraphs (a), (b)
and (c) above and assuming that (i) the purchase or acquisition of Shares is financed by internal
sources of funds and/or external borrowings, (ii) the Share Purchase Mandate had been effective on 1
January 2015, and (iii) the Company had purchased or acquired the 38,485,618 Shares (representing
three per cent. (3%) of its issued ordinary share capital at the Latest Practicable Date, the financial
effects of the purchase or acquisition of the 38,485,618 Shares by the Company pursuant to the
Share Purchase Mandate:
