Japfa fails to buy targeted maximum number of shares under equal access scheme

Shareholders will be entitled to sell to the company up to 9 per cent of shares held in their name

JAPFA managed to purchase only 76.3 per cent of the maximum number of shares it had aimed to buy in its own company under an equal access scheme

In a regulatory filing made on Monday (Sep 30), Japfa said that about 139.8 million shares would be acquired, compared with the planned purchase of 183.3 million shares or about 9 per cent of its shares in issue.

Japfa will make the payment to shareholders who participated in the scheme on Oct 7.

The company in August proposed an off-market purchase of its ordinary shares at 35.5 Singapore cents apiece – 6 per cent premium over the last dealt price before that announcement. However, Japfa’s net asset value stood at 52 cents a share.

Shareholders will be entitled to sell to the company up to 9 per cent of shares held in their name, with the option to tender for shares in excess of this entitlement if other shareholders did not fully participate in the offer.

Japfa will hold all the shares bought back as treasury shares first and subsequently use the shares or void them.

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