Mass housing developer 8990 Holdings Inc. said Monday it will conduct a share buyback worth up P2 billion in a bid to enhance and improve shareholder value.
8990 Holdings said in a disclosure to the stock exchange it would implement the share buyback program for a period 18 months, or until August 1, 2020.
8990 Holdings said the share buyback program would not involve any active and widespread solicitation from shareholders of the company to sell their shares.
The company’s majority shareholders, namely IHoldings Inc. and Kwantien Development Corp., as well their controlling shareholders would not participate in the share buyback program.
“The share buyback program is to enhance shareholder value and to manifest the company’s value and prospects through the repurchase of the common shares,” the housing developer said.
8990 Holdings said it would repurchase shares using cash and place them repurchased under the company’s treasury shares.
“Any share buyback implemented shall take into account the need to maintain the liquidity of the company’s stock in the market, as well as public ownership requirements,” 8990 Holdings said.
8990 Holdings earlier said it planned to launch P50 billion worth of residential projects in 2019 amid a strong demand despite the rising interest rate environment.
Most of these projects are located in Metro Manila, Davao, Cebu, Bulacan and Bacolod.
The mass housing developer expects revenues in 2019 to reach P13.5 billion, up 17.4 percent from P11.billion in 2018, with more than half coming from its projects in Luzon, especially its largest project to-date—Urban Deca Homes Manila in Tondo. Net income is also seen to hit P5.2 billion this year.
Situated on an 8.4-hectare property, Urban Deca Homes Manila is a 13-tower residential complex offering over 13,000 units with an estimated sales value of P20 billion.
Targeting the residents of Tondo and those living in the Port Area, Intramuros, Divisoria, and the Camanava (Caloocan-Malabon-Navotas-Valenzuela) area, Urban Deca Homes Manila addresses the housing needs in the most densely-populated area in Metro Manila.
The property firm also recently teamed up with the SM Group as the lead anchor tenant for the planned 18,000-square meter Deca Mall.