8990 board approves P2-billion share buyback plan

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8990 HOLDINGS, Inc. said on Monday its board of directors approved the plan to repurchase up to P2-billion worth of shares in the next 18 months.

“The purpose for the Share BuyBack Program is to enhance and improve shareholder value and to manifest confidence in the Company’s value and prospects through repurchase of the common shares,” the mass housing developer said in a disclosure in the stock exchange.

The share buyback program started on Feb. 1, and will end on Aug. 1, 2020.

8990 Holdings said it repurchase the shares using cash and book them as treasury shares.

“Buyback transactions will be triggered in the cases where: (i) the company stock is substantially undervalued, (ii) when there is high volatility in share prices, or (iii) in any other instance where a buyback would serve to enhance or improve shareholder value, each as reasonably determined by the Chairman, the Chairman Emeritus and the President (acting as a body),” the company said.

Shares in 8990 Holdings jumped 4.8% or P0.48 to close at P10.48 apiece in the stock exchange on Monday.

Last year, the listed real estate firm said it will be spending about P10 billion in capital expenditure in 2019 to boost its hospitality portfolio.

It also announced plans to launch three to four leisure properties every year in the next five years through newly-formed subsidiary 8990 Leisure and Resorts. — Vincent Mariel P. Galang