Megawide earmarks P2B for buyback program

Construction and engineering firm Megawide Construction Corp. has earmarked P2 billion for a stock buyback program, aiming to perk up “grossly undervalued” shares on the sluggish local stock market.

This developed as the company’s cofounder Michael Cosiquien stepped down as director after earlier reducing his stake and resigning as company chair.

Cosiquien has yet to sell his remaining shares in Megawide but he opted to step down to focus on growing his new business empire under ISOC Holdings Inc.

Cofounder and Megawide chair and chief executive officer Edgar Saavedra said in a text message Cosiquien had given up even his directorship at the company “because he’s busy with his cold storage business.”

Last week, Cosiquien’s ISOC Holdings opened the first facility under the ORCA cold chain logistics brand.

The 4,500-square-meter facility in Alabang is the first of four sites planned by ISOC in Luzon and the Visayas.

ISOC Holdings, through iLand Bay Plaza, is also building a 12-story mixed-use development located along Macapagal Boulevard, Pasay City, which will have 23,541 square meters of commercial office and retail space.

For its part, the P2-billion buyback program of Megawide is expected to be implemented over two years.

The company’s board also approved the declaration of cash dividends, equivalent to 20 percent of 2017’s net income, for a total of P247 million or P0.12 a share.

These will be payable to shareholders on record as of Oct. 15 and payable on Nov. 12 this year. —DORIS DUMLAO-ABADILLA