EDC buys back shares worth P4B

The good news is that Energy Development Corp. (EDC) is giving shareholders an opportunity to cash in on a buyback program. The bad news is that a unit of the Bacon-Manito (BacMan) geothermal complex in Bicol has unexpectedly, although only temporarily, shut down.

In a disclosure to the Philippine Stock Exchange, EDC said its board of directors had approved a proposed P4-billion, two-year, common share buy-back program and authorized management to buy from the market at its discretion.

“This is part of the continuing commitment to utilize some of its cash, from time to time, for the benefit of its shareholders/ employees,” EDC said.

At a price of P8.86 a share as of Monday, the P4 billion is equivalent to about 2.4 percent of the company’s total outstanding common shares.

The buyback period is from March 15, 2015 to March 14, 2017.

In a separate disclosure, EDC said one unit of the 130-megawatt Bacon-Manito (BacMan) geothermal power plant in Bicol region had temporarily shut down.

EDC said the 20-megawatt Unit 3 of Bac-Man Geothermal, Inc. (BGI), a wholly-owned subsidiary of EDC, tripped on March 5, but was expected to be back in operation by summer.