LEADING consumer and industrial solutions manufacturer Concepcion Industrial Corp. (CIC) has approved a three-year program to buy back shares from the open market.
In a disclosure to the Philippine Stock Exchange on Wednesday, CIC said its board had approved a maximum budget of P100 million to buy back shares in the first year.
The board mandated the company to cumulatively buy 11 million shares over a three-year period representing up to 3 percent of CIC’s market capitalization.
At present, CIC is valued by the stock market at around P12.7 billion.
“The buyback program aims to enhance shareholder value through the repurchase of shares whenever the stock is trading at a price discount perceived by the company as not reflective of its fair corporate value,” CIC said.
“It is not expected to adversely affect the company’s ability to fund any of its prospective and existing projects/investments,” it said.
CIC grew its net profit last year by 3.5 percent to around P659.45 million, boosted by robust fourth quarter performance.
In the last three months of 2015, sales jumped by over 25 percent, driven by overall strong market performance in both consumer durables and building solutions. First-time buyers greatly contributed to the sales performance.
CIC also reported that 2015 was a milestone for the company as it sold over 750,000 units of consumer durables from air-conditioning, refrigeration and new products in laundry and kitchen appliances. It likewise breached the P10-billion mark with sales of P10.6 billion.