Sats' S$1.6m share buybacks beg question of prudence

Some have questioned cash-depleting move at a time when firm is cutting costs to ride out virus outbreak

Tay Peck Gek

Published Thu, Apr 23, 2020 · 09:50 PM

Singapore

LISTED ground handler and inflight caterer Sats spent nearly S$1.6 million on share buybacks in the first week of April, giving rise to questions over the prudence of the cash expenditure at this time.

Sats repurchased 535,000 shares over five trading sessions between April 1 and April 7, enlarging its treasury stock pool to 6.4 million shares from 5.8 million shares, according to the company's regulatory filings with the Singapore Exchange (SGX).

A Sats spokesperson told The Business Times that it is obliged to issue three million to four million shares per year out of its treasury stock pool to managers and senior manage…