Shanghai mechanical & electrical announces up to $278m share buyback

Shanghai Mechanical & Electrical Industry will repurchase between 10,227,393 and 20,454,786 B-shares through centralized competitive bidding, with the specific amount determined by the program's completion or expiration. The buyback, funded by the company's own capital, aims to reduce registered capital, with shares purchased at a maximum price of $1.920 per share. The total estimated cost for the repurchase is up to 278,305,500 yuan.

The repurchase program, approved by the board and shareholders, will span 12 months from the date of shareholder approval. This initiative seeks to address the persistent trading of the company's B-shares below their net asset value per share, enhance per-share earnings, and strengthen shareholder returns. The buyback will adjust the company's equity structure, with the B-share proportion decreasing from 21.1% to between 19.5% and 20.3% post-repurchase.

The company's controlling shareholder, Shanghai Electric Group Co., Ltd., confirmed no plans to reduce its stake within the next six months. The board, senior management, and controlling shareholder have not engaged in any share trading activities in the six months preceding the repurchase resolution. Shanghai Mechanical & Electrical Industry has established a dedicated securities account for the buyback.