VMC buys back P1.83 B shares

MANILA, Philippines - Victorias Milling Co. Inc. (VMC), the country’s largest sugar firm, has bought back P1.83 billion worth of shares from the First Pacific Group led by business titan Manuel V. Pangilinan.

In a disclosure to the Philippine Stock Exchange yesterday, VMC said it repurchased 365 million shares at P5 apiece from a group of investors composed of First Agri Holdings Corp., Hargate Investments Ltd., and Nestar Investments Ltd.

“Management believes that the stock repurchase will enhance shareholder value. Effectively, the company will be increasing earnings per share to about 42 cents from 34 cents,” VMC said.

“Management constantly pursues ways to enhance shareholder value not only by continuing excellence in operations but also by cutting costs as highlighted in this year’s net income surpassing the one billion peso mark, a record in VMC’s 97 year existence,” it added.

VMC said the stock repurchase sends a strong signal that management believes in the bright future of the company “so much so that it is willing to invest in itself.”

The sugar firm added that the funds allocated for the acquisition are sufficient after considering this crop year’s capital expenditures and cash receipts from operations.

“In the last three years, VMC has embarked on a program to pre-pay all loan obligations under the rehabilitation plan approved by the SEC. VMC has already fully redeemed the convertible notes in the hands of its original noteholders,” the company said.

In December 2014, Pangilinan-led Metro Pacific Holdings Inc. also unloaded its entire 7.67-percentstake in VMC.

The shares were sold to First Agri Holdings.

VMC is engaged in integrated raw and refined sugar manufacturing with plant facilities in Victorias City, Negros Occidental.