The stock-buyback craze continues to rage as companies look to bolster their sagging share prices.
Metro Pacific Investments Corp. is the latest company to carry out a share repurchase program to boost shareholder value.
In a regulatory filing, MPIC said its board of directors approved the implementation of a share buyback program amounting to up to P5 billion for a period of three months or until May 26 this year.
“The purpose for the share buyback program is to enhance and improve shareholder value and to manifest confidence in the company’s value and prospects through the repurchase of its common shares,” MPIC said.
MPIC’s buyback transactions will be triggered in the cases where the company’s stock is deemed to be substantially undervalued, when there is high volatility in share prices, or in any other instance where a buyback will serve to enhance or improve shareholder value.
The stock closed 2.94% lower Wednesday at P2.97 each share.
MPIC’s share price has been on a downward spiral since President Duterte threatened to file economic sabotage cases against utility firms Manila Water Corp. and Maynilad Services Inc.
Maynilad is a joint venture between MPIC and DMCI Holdings Inc. of the Consunji family.