ALLIANCE GLOBAL Group, Inc. (AGI) will be buying back up to P2.5-billion worth of common shares listed on the exchange starting this week.
The Andrew L. Tan-led firm told the exchange on Monday its board of directors had approved a 12-month share buyback program beginning on Thursday.
The buyback will be done in the open market through the exchange’s trading facilities. AGI will be using cash and will book the shares as treasury shares.
It has not determined yet the total number of shares it will be buying, which will depend on the total price of shares. AGI said it has sufficient funding to support the planned buyback.
The program is intended to enhance AGI’s shareholder value.
AGI is currently doing a 12-month share buyback that will expire on Wednesday. It allocated P2.5 billion for the program and has, so far, bought back P2.06-billion worth of shares.
The company also did a two-year P5-billion share buyback program in 2017, from which it was able to buy about P4.28-billion worth of shares.
Shares in AGI closed P7.17 apiece on Monday, down eight centavos or 1.10% from the last session.
The company posted a 32% income drop to P3.8 billion in the first semester as its operations were challenged by the coronavirus pandemic. AGI has investments in real estate, hotel and casino, liquor manufacturing, and McDonald’s Philippines. — Denise A. Valdez