The stock price should firm up in the near term because Innotek has resumed its share buyback yesterday with 449,000 shares bought at 50 cents.
I can see that fr the company point of view buying the shares at 50 cents makes good money sense, cos that's 10% yield as it is going to pay 5 cents dividend.
Am not sure if it pays itself the dividend or it simply saves on not having to pay out 5 cents dividend. Anyone can clarify? Either way, it makes good sense to do the buyback. There will be more to come --- Innotek has a strong track record of share buybacks.
As expected, Innotek bought back shares again today --- 383,000 to be exact, at 50-51 cents.
Innotek has another 4 million or so shares more to scoop up and then it hits the 10% limit.
What happens after that? Will they get a renewed buyback mandate at the next AGM?
The company bought back 349,000 shares today. However, I am surprised to see it has hit 10.0% limit. Does it mean no more buyback until the mandate is renewed at the next AGM? Any guru can advise?
'Unusual' trading in Innotek linked to possible takeover offer
PUBLISHED ON JUL 18, 2014 5:00 PM 0 1 0 0
BY MELISSA TAN
SINGAPORE - Unusual trading activity in the shares of mainboard-listed precision engineering firm Innotek could be linked to a possible takeover of the company.
Innotek told the Singapore Exchange on Friday that it has received a letter from one of its substantial shareholders, Gazelle Capital, in which Gazelle said it was "in discusssions regarding a transaction which may or may not result in an offer for the shares of the company".
Gazelle added in its letter that the "discussions remain very preliminary".
The exchange had sent a query to Innotek on Thursday asking about what it called "unusual volume movements" in Innotek shares that day.
