ABACORE CAPITAL Holdings, Inc. is investing in a 15-hectare property at Simlong, Batangas as the listed firm aims to increase its investment properties. 

In a stock exchange disclosure on Monday, AbaCore said the location of the property is contiguous to the company’s current properties in Simlong. The investment was approved by its board on Sept. 22.

According to the company, the target investment property is “at a discount of around P225 million to the most recent appraised value.” 

“The investment will result in the increase in investment properties of the corporation and a replenishment of the inventory of its assets, in line with the previously adopted principle of the board to replace assets sold with new assets even in other areas,” the company said. 

In a separate statement, AbaCore said it would repurchase up to P45 million of its common stock upon the board’s approval to finalize details of the company’s buyback program.

The buyback program will run from October this year until September 2025. Guild Securities, Inc. will serve as the broker for the program.

To repurchase shares, AbaCore will spend the remaining funds after allocating for operational expenditures, capital expenditures, a 10% annual dividend, taxes, and payment of advances from related parties.

“We are pursuing this program as we believe our stock has strong fundamentals. We look forward to providing value to our shareholders and instilling confidence in our company’s future,” AbaCore President, Chairman, and Chief Executive Officer Raul B. de Mesa said. 

Meanwhile, AbaCore’s board also approved a business development incentive program that seeks to diversify the company’s operations and generate “regular” cash flows from its investment properties.

“The business development incentive program aims to ensure that AbaCore will continue to adapt to various evolving trends within the markets it operates in,” Mr. De Mesa said.

“While investing in properties will remain a core part of our operations, we acknowledge there is untapped potential coming from business ventures we could enter in the future with local and foreign partners,” he added. 

AbaCore is a listed holding company that has interests in sectors such as tourism, real estate, financial services, and energy. It recorded P384.6 million in net income as of August, a reversal of the P15.5 million net loss in the first half of last year. 

On Monday, shares of AbaCore at the local bourse rose two centavos or 1.8% to finish at P1.13 each. — Revin Mikhael D. Ochave