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QuestionsCategory: Management QuadrantIssue additional shares via share options and then buyback using company cash
Ang Henry asked 5 years ago

Hi,
I’ll like to know what’s the rationale of the above action, is the main reason¬†to offset the dilutive effects of EPS and CF per share respectively? Or other reasons I’m not aware of?

1 Answers
Victor Chng answered 5 years ago

Hi Henry,
 
From time to time some management will buyback share from the market at a price they perceive value and give it to the employee as share option. The move does not really dilute shareholder interest.

Ang Henry replied 5 years ago

Ok that’s only if the share price is considered undervalue based on what we’ve learnt here by removing non business related income?