Yangzijiang Financial seeks shareholder OK for buybacks

Singapore five-dollar note Photo by Leslie Shaffer

Yangzijiang Financial Holding (YZJFH) is seeking shareholder approval for a share buyback mandate at an extraordinary general meeting (EGM) set for 8 June, according to a filing to SGX Monday.

The company said it wanted the mandate so it could increase shareholders’ value and improve the return on equity.

“The share buy-back Mandate provides the company with a mechanism to facilitate the return of surplus cash over and above the group’s working capital requirements in an expedient and cost-efficient manner,” YZJFH said.

“Share buy-backs also allow the directors to exercise control over the company’s share structure and, depending on market conditions, may lead to an enhancement of the EPS and/or NTA per share,” YZJFH said. EPS stands for earnings per share, and NTA stands for net tangible assets.

“The directors further believe that share buy-backs may also help to mitigate short-term market volatility and offset the effects of share price speculation,” the filing said.