Megawide Construction Corp. said its board approved a P2-billion share buyback program to be implemented over period of two years,
Megawide said in a disclosure to the stock exchange its board also approved the declaration of cash dividends equivalent to 20 percent of 2017’s net income, amounting to P247 million or P0.12 per share.
Megawide said the twin moves were part of the company’s capital management strategy and shareholder value enhancement program, especially at a time when the local bourse is negatively affected by geopolitical and macroeconomic issues here and abroad.
“Amid the volatility in the stock market, the company’s management and board believe it is an opportune time to repurchase its own shares, which have been grossly undervalued following the overall market weakness,” Megawide chairman and chief executive Edgar Saavedra said.
The cash dividend is payable to shareholders on November 12, 2018 on record as of October 15, 2018.