MANILA, Philippines — Property giant Megaworld Corp. will embark on a P2-billion share buyback program to boost its stock price, which it believes does not reflect the true value of the company.
Megaworld said its board approved the buyback of up to P2 billion worth of its common shares in the open market at prevailing market prices.
“The board believes that current market prices do not reflect the true value of the company’s shares and seeks to enhance shareholder value through a share buyback program,” Megaworld said in a stock exchange filing.
Megaworld shares closed at P2.04 apiece on Wednesday, while its 52-week high reached P2.36 per share and its 52-week low hit P1.72.
The company’s share buyback program will have a term of 24 months, with share purchases to be made through the trading facilities of the Philippine Stock Exchange.
Megaworld will source funds for the buyback program from internally generated funds of the company.
Shares purchased under the program will be booked as the company’s treasury shares.
As of end-August, Megaworld has an authorized capital stock of P45.7 billion consisting of 45.64 billion common shares with a par value of P1 per share and six billion voting preferred shares with a par value of P0.01 per share.
Of its authorized capital, 32.56 billion common shares and six billion preferred shares are issued and outstanding, with 1.19 billion treasury shares.
Megaworld said the actual number of shares to be repurchased and the company’s capital structure after the buyback program cannot be determined yet, as these will depend on the total buyback price of the shares.
It said that the terms of the program will be subject to management review from time to time and will be implemented in a manner that is beneficial to the company.
Megaworld to embark on P2 billion share buyback program
Richmond Mercurio
MANILA, Philippines — Property giant Megaworld Corp. will embark on a P2-billion share buyback program to boost its stock price, which it believes does not reflect the true value of the company.
Megaworld said its board approved the buyback of up to P2 billion worth of its common shares in the open market at prevailing market prices.
“The board believes that current market prices do not reflect the true value of the company’s shares and seeks to enhance shareholder value through a share buyback program,” Megaworld said in a stock exchange filing.
Megaworld shares closed at P2.04 apiece on Wednesday, while its 52-week high reached P2.36 per share and its 52-week low hit P1.72.
The company’s share buyback program will have a term of 24 months, with share purchases to be made through the trading facilities of the Philippine Stock Exchange.
Megaworld will source funds for the buyback program from internally generated funds of the company.
Shares purchased under the program will be booked as the company’s treasury shares.
As of end-August, Megaworld has an authorized capital stock of P45.7 billion consisting of 45.64 billion common shares with a par value of P1 per share and six billion voting preferred shares with a par value of P0.01 per share.
Of its authorized capital, 32.56 billion common shares and six billion preferred shares are issued and outstanding, with 1.19 billion treasury shares.
Megaworld said the actual number of shares to be repurchased and the company’s capital structure after the buyback program cannot be determined yet, as these will depend on the total buyback price of the shares.
It said that the terms of the program will be subject to management review from time to time and will be implemented in a manner that is beneficial to the company.