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Alliance Global’s board clears plan to buy back P2.5-billion worth of shares

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Alliance Global Group Inc., the holding company of billionaire Andrew Tan, disclosed a plan to buy back P2.5 billion worth of stocks to improve shareholder value.

AGI said in a disclosure to the stock exchange its board of directors approved the buyback program, which would be implemented for a period of 12 months starting Sept. 24, 2020 until Sept 23, 2021.

The program will be executed in the open market through the trading facilities of the Philippine Stock Exchange.

AGI said it would use cash to repurchase shares and that it had sufficient retained earnings to support the new buy-back program. The repurchased shares will be booked as treasury shares.

“The new buy-back program shall be implemented in an orderly manner and should not adversely affect the company’s and its subsidiaries’ prospective and existing projects,” AGI said.

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The stock of AGI recently hit a 52-week low of P5.30 from a 52-week high of P12.44. It also fell 1.1 percent to close at P7.17 Monday.

The company, in the previous P2.5-billion buyback program that started in September 2019, repurchased 210.35 million common shares from the open market for P1.99 billion.

AGI earlier said it reduced the planned 2020 capital expenditures to P42 billion from the original target of P79 billion as the group focuses on preserving cash because of the pandemic.

AGI reported a net income of P3.8 billion in the first half, down 53 percent from P8.1 billion in the same period last year, on lower income contribution from core businesses.

Consolidated revenues also fell 26 percent to P61.4-billion from last year’s P82.8 billion.

Several listed companies earlier announced share buyback programs while others increased the size of their buybacks amid the market sell off on fears related to the spread of COVID-19.

Among these companies were Robinsons Retail Holdings Inc., Megaworld Construction Corp., Megawide Construction Corp. and Ayala Land Inc.

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