First Gen extends share buyback program by 2 years

Lopez-led First Gen Corp. has extended by another two years its share buyback program covering up to 300 million common shares.

In a disclosure to the Philippine Stock Exchange on Thursday, First Gen said the program would be extended up to May 31, 2014, from June 1, 2012. The original share buyback program was approved by the company’s board on May 12, 2010, and is due to end on May 31 this year.

“The company will undertake a buyback transaction only if and to the extent that the price per share is deemed extremely undervalued, share prices are considered highly volatile, or in any other instance where the company believes that a buyback will result in enhancing shareholder value,” First Gen said.

It said the number of shares and the buyback period would remain subject to revision by the board of directors as circumstances might warrant. The program will be executed in open market through the trading facilities of the bourse.

For this year, First Gen is targeting to triple its net income from the $35 million it posted last year, on the back of higher electricity revenues from affiliate Energy Development Corp. and the ancillary contracts of subsidiary First Gen Hydro Power Corp.