Success Transformer Corporation Berhad announces an Equity Buyback for 10% of its issued share capital.
January 04, 2017
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Success Transformer Corporation Berhad (KLSE:SUCCESS) commences share repurchases on January 4, 2017, under the program mandated by the shareholders in the Annual General Meeting held on November 21, 2016. As per the mandate, the company is authorized to repurchase up to 10% of its issued share capital. The purchase price of shares cannot be more than 15% above the weighted average market price of the shares for the 5 market days immediately preceding the date of the purchase. In the case of a resale of the treasury shares on Bursa Securities, the company may only resell treasury shares at a price, which is either not less than the weighted average market price of shares for the 5 market days immediately prior to the date of the resale or a discounted price of not more than 5% to the weighted average market price for shares for the 5 market days immediately prior to the date of the resale, provided that the resale takes place no earlier than 30 days from the date of the purchase and the resale price is not less than the cost of purchase of the shares being resold. The share buy-back will be made wholly out of the retained profits and/or share premium account of the company. Repurchased shares will be canceled, or retained in treasury, or partially cancelled and retained in treasury, or distributed as dividend to the shareholders or resold on Bursa Securities. The purpose of the program is to stabilize the supply and demand of shares being traded on Bursa Securities and improve company's EPS. The share repurchase program shall be valid until the earliest of the conclusion of the next Annual General Meeting, or the expiration of the period within which the next Annual General Meeting of the company is required by the bye-laws of company to be held or the passing of an ordinary resolution by the shareholders of the company in General Meeting revoking or varying the authority given to the directors of the company.
Success Transformer Corporation Berhad is a Malaysia-based company engaged in the business of investment holding and the provision of management services. The Company, through its subsidiary, associate, and joint venture companies, are principally engaged in designing, manufacturing and distribution of electrical apparatus and industrial lighting. Its main business operations encompass manufacturing power transformers and electrical apparatus products, such as automatic voltage stabilizers, detuned harmonic circuit filter reactor, battery chargers and testers. Its product range includes transformers, lightings, aluminum die casting and an intelligent lighting control system (ILCS) platform, which includes smart lighting, traffic adaptive illumination (tai), parking management, environmental analysis, metering, and Internet of things (IoT) connections. Its portfolio includes an LED range of industrial lighting products, such as floodlights, streetlights, high bays, and HID lighting.