Alliance Global Group Inc., the holding company of property magnate Andrew Tan, and its property unit Megaworld Corp. are buying back up to P5 billion worth of shares from the stock market.

A share buy-back program is a tool used by companies to enhance the value of their shares that are battered by a bearish market.

According to Megaworld, current market prices do not reflect the true value of the company’s shares.

Under the plan, Alliance Global will buy back P3 billion worth of shares while Megaworld will absorb P2 billion worth of stocks over the next 18 months.

Alliance Global has a consolidated cash position of P32 billion, of which 16 percent or P5 billion was set aside for the share buy-back program.

“There are always opportunities in every situation, and in the current environment, we believe we can enhance shareholder value by buying our own shares,” said Tan in a disclosure to the Philippine Stock Exchange.

Tan also said the share buy- back was the group’s “best option” to counter the current listlessness in the market.

Alliance Global is engaged in property development and investment through Megaworld, beverages through Emperador Distillers, Inc., and quick-service restaurants through Golden Arches Development Corp., the master franchise holder of McDonald’s.

Alliance Global has entered into a deal with Star Cruises Ltd. under which the latter has invested in Travellers International for developing two large-scale leisure and entertainment cities in Metro Manila.

Star Cruises, a member of the Malaysia-based Genting Group, is the third-largest cruise line operator in the world.

Alliance Global and Star Cruises will infuse $1.55 billion into two tourism-related projects on a 37-hectare portion of “Pagcor City” along the Manila Bay, and in a township project of Megaworld in Pasay City.

Out of the total budget, Travellers International, AGI’s tourism corporate vehicle, plans to contribute $1.1 billion. Travellers International will also spend $450 million to build three hotels as well as a themed shopping and entertainment center in Newport City, Megaworld’s 25-hectare urban resort complex across from the Ninoy Aquino International Airport Terminal 3.