Alliance Global, Megaworld set aside funds for share buyback program

MANILA, Philippines - Holding company Alliance Global Group Inc. and subsidiary, developer Megaworld Corp., will be buying back shares in a bid to increase shareholders' value. In a statement, the Andrew Tan-led companies announced a P5-billion share buyback program. In addition to the P2 billion share buyback that it announced earlier in July, Alliance Global is setting aside an extra P1 billion to increase the total size of the buyback to P3 billion. Megaworld, for its part, is budgeting P2 billion for its own share buyback over the next 18 months, bringing the total value of the shares to be purchased by Alliance Global to P5 billion. Alliance Global has a consolidated cash position of about P32 billion, of which about 16 percent, or P5 billion, is set aside for the share buy-back program. “There are always opportunities in every situation, and in the current environment, we believe we can enhance shareholder value by buying our own shares," said Tan. “Our P5 billion share buyback program for both Alliance Global and Megaworld is our best option under the present circumstances." Alliance Global is anchored in three business groups. These are property development and investment through Megaworld; food and beverage under Emperador Distillers Inc.; and quick-service restaurants with Golden Arches Development Corp. The holding company recently added hotel and tourism as the fourth and newest leg of its core businesses through its subsidiary, Travellers International Hotel Group Inc. Alliance Global has concluded a deal with Star Cruises Limited under which Star Cruises invested in Travellers International for the development of two large-scale leisure and entertainment cities in Metro Manila. Star Cruises is the third largest cruise line operator in the world, and a member of the Malaysia-based Genting Group, one of the largest leisure and entertainment companies in the world. For this year, Alliance Global is expecting a net profit projected to reach P3.9 billion compared with P3.29 billion last year. Alliance Global on Wednesday closed at P3.75, lower than its P4.65 price a year ago. Megaworld, on the other hand, ended the session at P1.44, not even half of the P3.40 price it had a year earlier. GMANews.TV