Where the amounts paid by the Company for the purchase or acquisition of Shares are made out of profits,
such amounts will correspondingly reduce the amount available for the distribution of cash dividends by the
Company. Where the amounts paid by the Company for the purchase or acquisition of Shares are made out
of capital, the amount available for the distribution of cash dividends by the Company will not be reduced but
the issued share capital of the Company will be reduced by such amounts. The total amount of the purchase
or acquisition price shall include any expenses (including brokerage, trading fee and/or clearing fee) incurred
directly in the purchase or acquisition of the Shares which is paid out of the Company’s profits or capital.
Where a purchase or an acquisition of Shares is financed by internal resources and/or external borrowings, there
may be an increase in the Group’s gearing ratio, and a decline in the Group’s current ratio and Shareholders’
funds. The actual impact on the Group’s gearing and current ratios will depend on,
inter alia
, the number of
Shares purchased or acquired and the prices at which the Shares are purchased or acquired.
The Directors do not propose to exercise the Share Purchase Mandate to such an extent that the Group’s working
capital requirements and ability to service its debts would be adversely affected. The purchase(s) or acquisition(s)
of Shares will be effected taking into account,
inter alia
, the Group’s working capital requirements, availability of
financial resources, the Group’s expansion and investment plans and prevailing market conditions. The Company
intends to exercise the Share Purchase Mandate with a view to enhancing the Group’s NTA per share and/or EPS.
For illustrative purposes only
and on the basis of the following assumptions:
(a)
the purchase or acquisition by the Company of the maximum of 19,674,418 Shares (representing 10%
of the issued Shares (excluding treasury shares) as at the Latest Practicable Date) was made on
1 January 2015;
(b)
in the case of Market Purchases, the Company purchased or acquired Shares at the Maximum Price of
S$0.6552 for each Share (being 105% of the Average Closing Price as at the Latest Practicable Date), and
in the case of Off-Market Purchases, the Company purchased or acquired Shares at the Maximum Price
of S$0.7500 for each Share (being 120% of the Highest Last Dealt Price as at the Latest Practicable Date);
(c)
the purchase or acquisition of Shares by the Company, which required funds amounting to, in the case
of Market Purchases, S$12,890,679, and in the case of Off-Market Purchases, S$14,755,814, was financed
entirely using internal sources of funds, and the Company received dividends from its subsidiaries to
finance the purchase or acquisition;
(d)
the Singapore corporate tax rate applied was 17%; and
(e)
the cash reserves applied by the Group to pay for the purchase or acquisition of Shares, would otherwise
have earned negligible return,
the financial effects of purchases or acquisitions of Shares by the Company pursuant to the Share Purchase
Mandate on the audited financial statements of the Company and the Group for FY2015 are set out below:
The financial effects set out below are for illustrative purposes only. The illustrations are based on historical
numbers for FY2015 and are in noway indicative of the Company’s and theGroup’s future financial performance
or a forecast of the Company’s and the Group’s financial position.
Although the Share Purchase Mandate would authorise the Company to purchase or acquire up to 10% of
the issued Shares (excluding treasury shares), the Company may not necessarily purchase or acquire part of
or the entire 10% of the issued Shares (excluding treasury shares).
letter to
shareholders
• e x p e r i e n c i n g
k i n g s m e n
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