Hong Lai Huat Group Limited Approves Modified Share Purchase Mandate at EGM

Key Points from the Extraordinary General Meeting (EGM)

• Date and Venue: The EGM was held on 24 November 2025 at Raffles Town Club, Singapore, with both physical and virtual participation by directors and shareholders.
• Attendance: The meeting was attended by the full Board of Directors, including Independent Directors and key executives. Proxies were appointed, and a quorum was present, confirming the meeting’s validity.
• Voting Mechanism: All resolutions were voted on by poll, with B.A.C.S. Private Limited and CACS Corporate Advisory Pte. Ltd. acting as Polling Agent and Scrutineer, respectively.
• Main Resolution: The centerpiece of the meeting was the proposal to adopt a Modified Share Purchase Mandate, granting the Board the authority to repurchase up to 10% of the company’s issued shares within specified price limits.

Details of the Modified Share Purchase Mandate

• Mandate Scope: The Board is authorised to buy back ordinary shares not exceeding 10% of the company’s issued shares (excluding treasury shares and subsidiary holdings).
• Purchase Methods:
  • On-Market Purchases: Through the Singapore Exchange Securities Trading Limited (SGX-ST), transacted via licensed stockbrokers.
  • Off-Market Purchases: Via equal access schemes as determined by the Board, in accordance with Singapore’s Companies Act and SGX listing rules.
• Price Limits:
  • Market Purchases: Maximum purchase price is 105% of the average closing price over the last five market days.
  • Off-Market Purchases: Maximum purchase price is 120% of the average closing price over the same period.
• Mandate Duration: The authority is valid until the next annual general meeting (AGM), the completion of the share purchase mandate, or if revoked by shareholders at a general meeting, whichever is earliest.
• Abstentions: Dato’ Dr Ong Bee Huat, Mr Ong Jia Jing, and their concert parties abstained from voting, along with a significant number of abstentions totaling 248,812,063 shares.

Shareholder Discussions and Voting Outcome

• Questions and Clarifications:
  • No questions were submitted prior to the EGM.
  • During the meeting, one shareholder sought rationale for the resolution and another asked why the EGM was necessary instead of waiting for the AGM. The company clarified that there is no set timeline for corporate actions and waiting for the AGM would delay implementation by six months.
• Voting Results:
  • Ordinary Resolution to adopt the Modified Share Purchase Mandate was passed with an overwhelming majority: 99.92% votes in favour (49,678,847 shares), 0.08% against (41,566 shares).
  • 248,812,063 shares abstained from voting.

Implications for Shareholders and Potential Price Sensitivity

• The ability for the company to repurchase up to 10% of its issued share capital can be highly price sensitive. Share buybacks often signal management’s confidence in the company’s prospects and can enhance shareholder value by reducing the number of shares outstanding, potentially boosting earnings per share and supporting the share price.
• The buyback mandate provides the Board with flexibility to act swiftly in the market, either through on-market or off-market purchases, subject to regulatory limits. This could help stabilise or increase the share price, especially during periods of market volatility.
• The large volume of abstentions, especially from key insiders, is notable but typical for such resolutions where interested parties refrain from voting to comply with corporate governance standards.
• The prompt approval at an EGM, rather than waiting for the next AGM, highlights the urgency or strategic importance the Board places on having this buyback tool available immediately.

Conclusion

The approval of the Modified Share Purchase Mandate at Hong Lai Huat Group Limited’s EGM is a significant corporate action that provides the company with the flexibility to support its share price through buybacks. This move is generally viewed positively by the market and could potentially influence the share price in the near term. Investors should monitor subsequent disclosures regarding any share repurchases executed under this mandate.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors are advised to conduct their own research or consult a qualified financial advisor before making investment decisions.

View Hong Lai Huat Historical chart here