(b)
The Share Purchase Mandate is an expedient, effective and cost-efficient way for the Company
to return surplus cash/funds over and above its ordinary capital requirements, if any, which
is in excess of the financial and investment needs of the Company to its Shareholders. In
addition, the Share Purchase Mandate will allow the Company to have greater flexibility over,
inter alia
, the Company’s share capital structure, cash reserves and its dividend policy.
(c)
The Share Purchase Mandate will provide the Company the flexibility to undertake share
purchases at any time, subject to market conditions, during the period when the Share
Purchase Mandate is in force.
(d)
The Share Purchase Mandate will help buffer short-term share price volatility and offset the
effects of short-term share price speculation, thereby boosting Shareholders’ confidence.
While the Share Purchase Mandate would authorise a purchase or acquisition of Shares up to the said
three per cent. (3%) limit during the duration referred to in paragraph 2.4.2 below, Shareholders
should note that purchases or acquisitions of Shares pursuant to the Share Purchase Mandate may not
be carried out to the full three per cent. (3%) limit as authorised and the purchases or acquisitions
of Shares pursuant to the Share Purchase Mandate would be made only as and when the Directors
consider it to be in the best interests of the Company and/or Shareholders and in circumstances which
they believe will not result in any material adverse effect to the financial position of the Company
or the Group, or result in the Company being delisted from the SGX-ST. The Directors will use their
best efforts to ensure that after a purchase or acquisition of Shares pursuant to the Share Purchase
Mandate, the number of Shares remaining in the hands of the public will not fall to such a level as
to cause market illiquidity or adversely affect the orderly trading and listing status of the Shares on
the SGX-ST.
2.3
Issued Shares as at the Latest Practicable Date
As at 5 April 2016 (“
Latest Practicable Date
”), the total number of issued Shares of the Company
(excluding treasury shares) is 1,274,185,662 Shares.
129
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
APPENDIX
