First Holdings OKs P5-B buyback plan
Iris Gonzales (The Philippine Star) - July 6, 2019 - 12:00am

MANILA, Philippines — The Lopez Group has expanded its massive share buyback program amid a string of similar buyback activities in the market by other listed firms owing to the prevailing volatility in the market.

In a disclosure, Lopez-owned First Philippine Holdings Corp. (FPH) approved an additional allotment of P5 billion for its buyback program, which is scheduled to run until July 2020.

This is in addition to an earlier approved program of P750 million.

“Last June 27, the executive committee approved an interim additional allotment of P750 million for the program. To date, about P6.7 billion worth of shares has been purchased by FPH,” the company said.

With the board’s approval, FPH will have the total amount of P5 billion available for further buybacks.

The company continues to buy back shares that are undervalued.

“The program is intended to strike a balance between enhancing the company’s capital structure and maintaining the ability to fund future growth and investments. Buyback transactions will be triggered if the company stock is substantially undervalued, when there is high volatility in share prices or in any instance where a buyback should serve to improve shareholder value. FPH will also be mindful of the need to maintain the liquidity of its stock in the market,” FPH said.

In the first quarter, FPH posted a 76 percent rise in net income P10.28 billion. Recurring net earnings jumped 53 percent to P10.4 billion.

FPH’s major business segments are power generation, real estate development, manufacturing, and construction and other services.

Its subsidiaries and affiliates include, among others, First Gen Corp., Energy Development Corp., First Philippine Industrial Corp.,  First Philippine Industrial Park and Rockwell Land Corp.

FIRST PHILIPPINE HOLDINGS CORP.
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