AGI sets aside P2.5B to buy back its shares
Tycoon Andrew Tan-led Alliance Global Group Inc. (AGI) has earmarked P2.5 billion for a new program to buy back shares from the stock market within the next 12 months.
AGI’s board cleared the stock repurchase program to start on Sept. 24, 2020 through Sept. 23, 2021, to enhance the company’s shareholder value.
The actual number of shares to be purchased will depend on the total buy-back price, AGI disclosed to the Philippine Stock Exchange on Monday.
Apart from creating demand for its own shares, stock buybacks benefit shareholders in the form of higher dividends, given that the reduction of shares will result in the distribution of earnings to fewer shareholders. The conglomerate is currently valued by the stock market at P70.63 billion. At its stock price of P7.17 as of Monday’s close, AGI is still trading 42 percent lower than its 52-week high of P12.44 per share last seen in early September 2019. INQ
