Robinsons Retail ups stock buyback plan to ₱5B
Ahead of the Gokongwei group-led Robinsons Retail Holdings Inc. (RRHI)’s exit from the local stock barometer on Monday, the multiformat retailer has set aside an additional P1 billion to boost its war chest for its stock buyback program.
RRHI’s board approved on Friday the extension of the company’s share repurchase program with the additional budget of P1 billion, bringing the total to ₱5 billion.
“The objectives of the share buyback program are to enhance shareholder value and to manifest confidence in the company’s value and prospects through the repurchase of the common shares of the company and through the return of a portion of the company’s capital to its shareholders,” RRHI said in a disclosure to the Philippine Stock Exchange (PSE).
“The share buyback program will not involve any active and widespread solicitation from the stockholders and will be implemented in the open market through the trading facilities of the Philippine Stock Exchange,” it added.
Board authority
RRHI’s board has authorized the company’s president and CEO, Robina Gokongwei-Pe, and chief financial officer Mylene Kasiban, to supervise the implementation of the share buyback program.
“The share buyback program will not affect any of the company’s prospective and existing projects and investments,” the company said.
RRHI first launched a program to buy back shares from the open market with a budget of P2 billion in March 2020. The program had been extended in February 2021 with an additional budget of P2 billion.
Third extension
The latest board approval marks the third extension of the buyback program.
From March 2020 up to Feb. 10 this year, the company has bought back 69.41 million common shares costing nearly P3.9 billion from the open market.
RRHI is currently valued by the stock market at nearly P83 billion.
In the latest rebalancing of the PSE Index which will take effect on Feb. 14, RRHI and Bloomberry Resorts Corp. will be replaced by consumer powerhouse Monde Nissin Corp. and liquor-maker Emperador Inc.
To qualify for the PSEi, a listed company must be among the top companies in terms of liquidity and market capitalization. It should also have a free float level of at least 15 percent of its outstanding shares.
