Transpac - Proposed return of surplus capital thru capital reduction exercise
The amount of cash distribution return to shareholders pursuant to the capital reduction is S$0.57 for each share held as at book closure date to be determined by the directors of the company.
Hi Dev, sorry for replying so late. The capital reduction exercise is meant to give back shareholders the extra cash that the company holds. Once the cash is return, i would expect the dip in stock price.
Hi Wilbert, it is almost the same as giving dividends. Probably, the only difference is that it is a one off event. You will not expect Transpac to give huge dividends like this frequently because it will hit the company's bottom line.
May I know what does this mean and how does it affect the stock price?
ReplyDeleteHi Dev, sorry for replying so late.
ReplyDeleteThe capital reduction exercise is meant to give back shareholders the extra cash that the company holds. Once the cash is return, i would expect the dip in stock price.
Hi, may i know how is this different from paying out dividends?
ReplyDeleteHi Wilbert, it is almost the same as giving dividends. Probably, the only difference is that it is a one off event. You will not expect Transpac to give huge dividends like this frequently because it will hit the company's bottom line.
ReplyDelete