notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
28 TREASURY SHARES
Group and Company
2014
2013
Number of shares
Amount Number of shares
Amount
‘000
RM’000
‘000
RM’000
At 1 January
5,270
8,893
4,704
8,573
Shares repurchased
3,446
6,046
7,536
12,628
Share dividends distributed to owners of the Company
(5,126)
(8,654)
(6,970)
(12,308)
At 31 December
3,590
6,285
5,270
8,893
The shareholders of the Company had approved an ordinary resolution at the Fourteenth Annual General Meeting held on 20 June 2014 for the Company to purchase
its own shares up to a maximum of 10% of the issued and paid-up capital of the Company. The Directors of the Company are committed to enhancing the value of the
Company and believe that the purchase plan is being implemented in the best interest of the Company and its shareholders.
During the financial year, the Company purchased 3,446,000 (2013: 7,535,900) of its issued share capital from the open market on Bursa Malaysia for RM6,045,917
(2013: RM12,627,403). The prices paid for the shares purchased ranged from RM1.21 to RM1.98 (2013: RM1.58 to RM1.90) per share. The average price paid for the
shares purchased during the financial year was approximately RM1.75 (2013: RM1.68) per share. The purchase transactions were financed by internally generated
funds. Pursuant to the provisions of Section 67A of the Companies Act, 1965 (the “Act”), the Company may either retain the purchased shares as treasury shares or
cancel the purchased shares or a combination of both. The purchased shares held as treasury shares may either be distributed as share dividends, resold on Bursa
Malaysia in accordance with the relevant rules of Bursa Malaysia, subsequently cancelled or any combination of the three. As treasury shares, the rights attached as to
voting, dividends and participation in other distribution and otherwise are suspended and the treasury shares shall not be taken into account in calculating the number
or percentage of shares or of a class of shares for any purposes including substantial shareholdings, takeovers, notices, the requisitioning of meetings, the quorum for
a meeting and the result of a vote on a resolution at a meeting.
On 3 April 2014, 5,126,090 treasury shares were distributed to the shareholders on the basis of one (1) treasury share for every one hundred and fifty (150) existing Wah
Seong Corporation Berhad ordinary shares of RM0.50 held at the entitlement date of 13 March 2014 as special single tier share dividend.
135
Wah Seong Corporation Berhad • Annual Report 2014
