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 2015 are based on the assumptions set out below:
(a)
based on 1,274,185,662 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 38,225,569 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 38,225,569 Shares at the Maximum Price of S$0.038 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 38,225,569 Shares (excluding related expenses) is
approximately S$1,453,000; and
(c)
in the case of Off-Market Purchases by the Company and assuming that the Company
purchases or acquires the 38,225,569 Shares at the Maximum Price of S$0.044 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 38,225,569 Shares (excluding related
expenses) is approximately S$1,682,000.
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 38,225,569 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 38,225,569 Shares by the Company pursuant to the Share
Purchase Mandate:
(i)
by way of purchases made entirely out of capital and held as treasury shares; and
137
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
APPENDIX
