ROBINSONS Retail Holdings, Inc. (RRHI) is planning to buy back P2-billion worth of shares to improve shareholder value.
The Gokongwei-led firm told the stock exchange yesterday its board of directors had approved creating and implementing a share buyback program through open market trading.
“The objectives of the share buyback program are to enhance shareholder value and to manifest confidence in the company’s value and prospects through the repurchase of the common shares…and through the return of a portion of the company’s capital to its shareholders,” it said.
It did not disclose further details on the timeline for the program, but it noted this will not affect the company’s prospective and existing projects and investments.
“Subject to appropriate disclosures to the Philippine Stock Exchange and the Securities and Exchange Commission, the share buyback program shall commence upon approval by the Board of Directors of the company and shall end upon utilization of the above-mentioned amount, or as may otherwise be determined by the Board of Directors,” RRHI said.
Shares in the company at the stock exchange lost P4.50 or 7.32% to P57 each on Monday.
Other listed firms have also announced share buyback programs in recent weeks. Last Wednesday, Megawide Construction Corp. added P3 billion to its share buyback program to raise it to P5 billion.
Metro Pacific Investments Corp. (MPIC) also announced last month its plan to conduct a three-month share buyback program of up to P5 billion.
Ayala Land, Inc. (ALI) is likewise increasing its current share buyback program to P26.1 billion from P25 billion.
Share buyback programs are commonly done by public firms to preserve share price when it thinks its shares are undervalued.
Shares in Megawide closed flat at P11.80 each on Monday, shares in MPIC trimmed 14 centavos or 3.87% to P3.48 each, and shares in ALI fell P1.85 or 4.67% to P37.75 each. — Denise A. Valdez
