By James A. Loyola
Urban township developer Megaworld Corporation is planning to buy-back up to ₱5 billion worth of its common shares in the open market at prevailing market prices.
In a disclosure to the Philippine Stock Exchange, the firm said its Board of Directors approved the buy-back program because it “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 buy-back program.”
The share buy-back program will have a term of 24 months reckoned from this date. Share purchases shall be made through the trading facilities of the PSE.
“Funds to be used for the buy-back program shall be sourced from internally generated funds of the Company.Shares purchased under the buy-back program shall be booked as treasury shares of the Company,” said Megaworld.
As of February 28, 2020, Megworld has an authorized capital stock of ₱46.14 billion consisting of 40.14 billion common shares with par value of ₱1.00 per share and 6 billion voting preferred shares with par value of P0.01 per share.
Of this amount, 32.24 billion common shares and 6 billion preferred shares are issued and outstanding, with 129.92 million treasury shares.
“The actual number of shares to be repurchased and the Company’s capital structure after the buy-back program cannot as yet to be determined as these will depend on the total buy-back price of the shares,” said Megaworld.
It added that, “The terms of the buy-back program shall be subject to review of management from time to time and shall be implemented in a manner that is beneficial to the Company.”