SINGAPORE – Seatrium plans to buy back up to a maximum of 2 per cent of its total issued shares via the open market under a $100 million share buyback programme.

The offshore and marine giant said on April 29 that depending on the prices at which the shares are repurchased, the programme could take more than a year to be completed.

Seatrium shares jumped on the news, with the counter closing up 0.4 cent, or 4.5 per cent, to 9.3 cents on April 29. It was by far the most heavily traded stock by volume, with 1.09 billion shares changing hands.

“Funded out of existing cash, shares repurchased will be held as treasury shares which will in turn be deployed for the group’s existing employee share plans, used to pay the share component of the directors’ fees, or cancelled against the group’s share capital to increase shareholder returns,” said Seatrium.

It also said that given the group’s improved financial position and capital requirements for future growth, the programme provides for a systematic approach to further align its interest with shareholders.

The share buyback programme will be undertaken pursuant to the share purchase mandate which was approved by shareholders at the April 26 annual general meeting.

Separately, during the midday market break, Seatrium announced that each shareholder will receive one consolidated share for every 20 existing shares held prior to the share consolidation on record date of May 8.

This came after the proposed share consolidation was approved at the AGM.

The company said the number of consolidated shares will be rounded down to the nearest whole unit. THE BUSINESS TIMES