Alliance Global Group Inc. of Andrew Tan plans to spend another P2.5 billion on share buybacks.
AGI said in a disclosure to the stock exchange its board approved a new share buyback exercise for 12 months beginning September 23, 2019.
“We continue to pursue a share buyback because we believe in our stock’s underlying value, which is backed by our strong franchises across all our business segments, years of profitable operations, and continued expansion thrust,” said AGI chief executive officer Kevin L. Tan.
The new program comes after AGI completed an earlier share repurchase activity of up to P5 billion that began on September 20, 2017.
The previous buyback ran for 24 months when the company purchase 309 million shares, accounting for about 3 percent of the pre-buyback issued and outstanding shares.
“The share buyback is also EPS-enhancing and should improve our share values moving forward,” added Tan.
AGI is mainly engaged in property, liquor, gaming and quick service restaurant businesses.
The conglomerate recorded an attributable net income of P8.1 billion in the first half of the year, up 4 percent year-on-year, after consolidated revenues rose 15 percent to P82.8 billion.
The group also announced earlier that it was allocating P410 billion in capital expenditure from 2020 to 2024.
The company is earmarking roughly 73 percent of five-year capital spending plan for Megaworld’s residential development projects, as well as the aggressive construction of office buildings hotels and commercial malls.
Another 15 percent will be spent for for Travellers International Hotel Group Inc., which is expected to develop the next integrated resort in Westside City along the famed Manila Bay area.
Golden Arches Development Corp., which holds the exclusive franchise to operate quick service restaurants in the Philippines under the “McDonald’s” brand, will get about five percent of the group’s capital expenditures.
The unit will finance the rollout of 50 to 60 stores annually over the next five years.
Liquor unit Emperador Inc. will account for four of the group’s budget to fund its largely maintenance spending after heavy investments since 2014.