ESR Interim Report 2020 (EN)

29 CORPORATE GOVERNANCE AND OTHER INFORMATION ESR Interim Report 2020 PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES Repurchase During the six months ended 30 June 2020, the Company repurchased, under the repurchase mandates granted by the shareholders, a total of 536,400 shares ranging from HK$12.34 to HK$13.00 per share representing approximately 0.02% of the then issued shares for a consideration of US$0.9 million (approximately HK$6.9 million). The repurchased shares have been cancelled. The share repurchase reflects the Company’s confidence in its financial position, business fundamentals and prospects, and would, ultimately, benefit the Company and create value to the Shareholders. The share repurchase was financed by the Company with its existing available cash. The Board believes that the current financial resources of the Company would enable it to implement the share repurchase while maintaining a solid and healthy financial position for the continued growth of the Group’s operations. Redemption of Perpetual Securities (“Perpetual Securities”) By reference to the announcement of the Company dated 8 May 2020, the Company exercised the option to redeem all of the outstanding Perpetual Securities on the Singapore Exchange on 7 June 2020 (the “ First Call Date ”) at 100 percent of the principal amount of US$100 million together with any distribution accrued to the First Call Date. As the First Call Date was not a business day, the redemption payment with a total sum of US$104,125,000 was made on 8 June 2020 and the Perpetual Securities were surrendered for cancellation thereafter. Save as disclosed above, during the six months ended 30 June 2020, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the listed securities of the Company. ISSUE FOR CASH OF EQUITY SECURITIES Save for the issue of shares pursuant to the exercise of options granted under the KM ESOP as disclosed on page 22, during the six months ended 30 June 2020, there was no other issue of equity securities (including securities convertible into equity securities) of the Company. USE OF NET PROCEEDS FROM LISTING The Company’s Shares were listed on the Stock Exchange on 1 November 2019 by way of Global Offering and the net proceeds raised (after deduction of the underwriting fees and commissions and relevant expenses) from the listing of the Company on the Stock Exchange was approximately HK$4,461.5 million (approximately US$570 million). During the six months ended 30 June 2020, the Company utilized approximately US$166 million for the development of logistics properties on our own balance sheet and making co-investments in the funds and investment vehicles we manage. We have fully utilized the net proceeds from the Global Offering in accordance with the purposes set out in the section headed “Future Plans and Use of Proceeds” in the prospectus of the Company dated 22 October 2019. REVIEW OF INTERIM REPORT The Audit Committee has reviewed the unaudited condensed consolidated financial information for the six months ended 30 June 2020. Ernst & Young, the Group’s external auditor, has carried out a review of the unaudited condensed consolidated financial information for the six months ended 30 June 2020 in accordance with Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”).