AGI going for P5-billion share buy back

Alliance Global Group Inc. (AGI) is buying back P5 billion worth of its shares in a bid to enhance shareholder value.

“The board of Alliance Global has approved a share buyback of up to P5 billion over a 24-month period,” Kingson Sian said during the company's annual stockholders' meeting in Quezon City on Tuesday.

The share buy-back program will start on Wednesday, September 20, and last until September 20, 2019. It will be executed in the open market via the trading facilities of the Philippine Stock Exchange.

The actual number of shares would depend on the total buy-back price, AGI said in a separate filing on the PSE.

The repurchase program will use the company's available cash, and the reacquired shares will be booked as treasury shares.

“We are undertaking this corporate action because we believe that our shares are grossly undervalued," Sian said.

AGI shares closed at P15.04 per share on Tuesday, up 1.90 percent from P14.76 on Monday, bringing its total market capitalization to P151,582,660,970.04.

"Our group has been consistently profitable, with attractive growth prospects, and enjoys strong brand equity and therefore views this exercise as a means to enhance shareholder value over time," Sian said.

In 2016, AGI posted a core net income of P22.8 billion and revenue of P139.6 billion. The company's consolidated earnings before interests, taxes, depreciation, and amortization stood at P38.8 billion, up 9 percent year-on-year.

“AGI continues to build on its strength with a business model that is time-tested and stress-tested,” Sian said. — VDS, GMA News