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Issue additional shares via share options and then buyback using company cash

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 Staff 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?