Property developer Belle Corp. said Wednesday it will implement a P1-billion share buyback program to improve shareholder value.
Belle said in a disclosure to the stock exchange its board of directors approved the proposed share buy back program and authorized management to buy from the stock market up to P1 billion worth of company’s shares. No timetable was set for the share repurchase program.
Belle’s stock on Wednesday reached a high of P4.87, before closing at P4.69, up 4.22 percent from last Tuesday’s close of P4.50.
A share buyback program is usually implemented when a listed company’s management thinks that its shares are undervalued. The company can buy shares directly from the market or offer its shareholder the option to tender their shares directly to the company at a fixed price.
Meanwhile, Belle disclosed its board approved the declaration of special cash dividend of P0.18 per share for shareholders of record as of Feb. 10, 2015. Payment date was set on March 9, 2015.