Buyback activities surge as stock prices plunge

Buyback activities surge as stock prices plunge

Directors of several firms buy shares for the first time since listing

 

 

SC Global Developments

 

Property developer SC Global Developments bought back shares for the first time since buybacks were introduced by the Exchange in June 1999 with 485,000 shares purchased from June 5 to 13 at an average of $1.24 each. The trades, which accounted for 11 per cent of the stock’s trading volume, were made on the back of the 49 per cent decline in the share price since December 2007 from $2.45.

 

Aside from the repurchases, there were acquisitions by Legg Mason Inc and Ardesia Developments Pte Ltd earlier this year. Legg Mason reported an initial filing on April 22 of 668,000 shares at $1.39 each, which increased its deemed holdings to 20.2 million shares or 5.1 per cent of the issued capital.

 

Ardesia Developments Pte Ltd, on the other hand, purchased 4.3 million shares on Feb 1 at an estimated price of $1.78 each, which boosted its direct stake to 51.7 million shares or 13.1 per cent. The shareholder previously acquired 3.6 million shares on Dec 11, 2007 at an estimated price of $2.30 each, 5.2 million shares on Nov 20, 2007 at an estimated price of $2.50 each, and 1.2 million shares on Aug 10, 2007 at an estimated price of $2.65 each.

 

The group became a substantial shareholder on June 22, 2007 following the purchase of an initial 37.4 million shares or 10 per cent at $3.00 each.

 

SC Global Developments announced its first quarter results on May 13 with net profit up by 19 per cent to $19.165 million for the three months to March 31, 2008. The stock closed at $1.20 on Friday.

 

 

Source: Business Times

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