Leading mass housing developer 8990 Holdings has suspended its P2-billion stock buyback program to conserve liquidity given lingering uncertainties caused by the coronavirus (COVID-19) pandemic.
Since announcing the buyback program in February last year, 8990 Holdings has repurchased about 126.59 million shares for about P1.8 billion.
“Management believes this suspension to be the prudent course of action given the uncertainty and challenges that may result from this pandemic. This, however, is without prejudice to the resumption of the program consistent with the terms and parameters set by board, as and when more favorable circumstances warrant the same,” the company said.
“At this time, the company is determined to instead focus its resources on supporting its employees and funding operational activities. The company continues to closely monitor the situation and is taking appropriate actions to optimize cash flows and minimize costs,” it added.The company’s P2-billion 18-month share buyback program excluded the company’s majority shareholders from participating in the program. Controlling shareholders such as iHoldings and Kwantlen Development Corp. said they would not participate as an act of good faith to existing shareholders.—Doris Dumlao-Abadilla INQ