Yangzijiang continues to buy back shares

Yangzijiang Shipbuilding bought back 2 million shares in the market at S$0.945 to S$0.95 each, the Chinese shipbuilder said at midday Wednesday, continuing the recent spate of buybacks in the wake of the stock’s plunge.

That brought the total shares bought back to 8 million since 15 August.

The stock was down 2.06 percent at S$0.95 at 1:10 P.M. SGT.

Shares of the shipbuilder had tumbled on 8 August, dropping as much as 28.5 percent intraday to as low as S$0.93 before retracting to S$1.04, down 20 percent; trading was then halted.

Trading was resumed 15 August after Yangzijiang said 14 August that Executive Chairman and controlling shareholder Ren Yuanlin had taken a leave of absence while he assists in a confidential investigation by certain Chinese governmental authorities.

“The businesses and operations of the group are unaffected by the investigation and Mr. Ren Yuanlin’s leave of absence and it is business as usual for the group’s businesses and operations,” Yangzijiang said 14 August.

After resuming trade, the stock ended 15 August down at S$0.86, before Yangzijiang announced its share buybacks, which appear to have spurred a rally.

The total consideration for Wednesday’s buyback was S$1.90 million, the filing said.

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