Concepcion to buy back shares to enhance shareholder value
Appliance maker Concepcion Industrial Corp. (CIC) of the family of Bilyonaryo Raul Concepcion is spending P100 million for a three-year share buy back program to enhance shareholder value.
CIC informed the Philippine Stock Exchange (PSE) the company’s Board of Directors approved a buy back program starting today until February 17, 2019.
The program shall be capped at a maximum of P100 million in the first year and up to 11 million shares representing approximately three percent of the company’s market capitalization
Companies listed at the PSE buy back their shares to enhance shareholder value whenever the stock is trading at a price discount perceived by companies as not reflective of their fair corporate value.
CIC has a market capitalization of P12.7 billion with 339.62 million shares being traded at the stock market. Shares of CIC gained 2.15 percent to P39.55 per share from Tuesday’s P37.40 per share.
The buy back program will be executed through the open market by means of the trading facilities of the PSE and will not involve active and widespread solicitation from stockholders.
CIC said the program will not adversely affect the company’s ability to fund any of its prospective and existing projects of investments.
Appliance brands carried by CIC include Carrier, Condura, Kelvinator, Toshiba, Midea, and Otis.