Mass housing developer 8990 Holdings Inc. said it will suspend its share buyback program in the light of challenges posed by the coronavirus (COVID-19) pandemic.
Instead of conducting a buyback program, 8990 Holdings said Monday in a disclosure to the stock exchange it would instead focus its resources in supporting employees and funding operational activities.
“In light of the COVID-19 pandemic, the management of 8990 Holdings Inc. has decided to suspend its share buyback program initiated on 04 February 2019. Management believes this suspension to be the prudent course of action given the uncertainty and challenges that may result from this pandemic,” 8990 Holdings said.
The company said it would resume its share buyback program under the same terms and conditions it set once the overall situation improved.
“The company continues to closely monitor the situation and is taking appropriate actions to optimize cash flows and minimize costs,” the mass housing developer said.
The company in February last year announced plans to re-acquire P2 billion worth of common shares until August 1, 2020 to boost share value.
The company said it would repurchase the stocks in cash through the PSE’s open market and book them as treasury shares.
8990 has purchased 126,591 million of its shares worth P1.8 billion since the company announced the repurchase program.
The company expects revenues this year to hit P20 billion with the launch of new projects this year.
It said it was also considering plans to issue bonds this year to refinance maturing bonds issued in 2015 and raise ₱2.4 billion from a planned securitization.