12.9

N Bhd, a listed corporation purchases 15,000 of its own shares in January 2010 and keeps them as treasury shares. Subsequently, N Bhd wishes to sell the treasury shares on 19 March 2010 (i.e. more than 30 days from the date of purchase, in accordance with paragraph 12.18 of the Main LR). The 5 days weighted average market price of N Bhd's shares immediately before 19 March 2010 is RM3.20. Can N Bhd sell its treasury shares at RM3.10 on 19 March 2010?

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Yes, N Bhd may sell its treasury shares at RM3.10 on 19 March 2010 provided that the price of RM3.10 is not less than the cost of purchase of the shares being sold. In fact, N Bhd may sell its treasury shares at any price not less than RM3.04 on 19 March 2010, which represents a discount of not more than 5% from the 5 days weighted average market price of RM3.20 immediately before 19 March 2010 provided that the price is not less than the cost of purchase of the shares being resold.