April 6, 2018 / 1:14 AM / in 3 months

China mall firm Red Star plans to buy back $585 mln in HK shares

HONG KONG, April 6 (Reuters) - China’s Red Star Macalline Group Corp Ltd said it plans to buy back HK$4.6 billion ($585 million) of its Hong Kong-listed shares to boost earnings per share and as it feels its stock price does not reflect its earnings performance.

The furniture store and shopping mall operator said it will offer HK$11.78 per share, a 17.6 percent premium to the previous close, to buy up to 388.92 million shares, or 9.9 percent of its total issued share capital.

The deal will be funded by internal resources. The company said it will not make an offer for its Shanghai-listed shares.

Up to Thursday’s close, the company shares had fallen 21 percent for the year to date, underperforming a 1.3 percent slide in the benchmark index. ($1 = 7.8490 Hong Kong dollars) (Reporting by Donny Kwok; Editing by Edwina Gibbs)

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