SINGAPORE (Sept 24): Stamford Land Corp and Singapore Shipping Corp, which share a common executive chairman in Ow Chio Kiat, have received mandates from shareholders to buy back up to 10% of their total issued shares. With the mandates in hand, both companies have proceeded with the share buybacks at a steady clip.
Unless held as treasury shares, shares bought back are cancelled. The smaller share base effectively enlarges the stake owned by each existing shareholder without them actually buying more shares. This means Ow will be able to tighten his hold over both companies.
In the case of Stamford Land, the 10% mandate translates into 86.4 million shares. According to a July 12 shareholders’ circular, Ow and the parties acting in concert with him own a total of 392.4 million shares, or 45.4% of the company.