Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, announced that it is undertaking another round of share repurchase program of up to P2.5-billion.
The Board of Directors of AGI has approved the new share buyback exercise, which will run 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,” explains Kevin L. Tan, chief executive officer, AGI.
The new program comes after AGI completes its earlier share repurchase activity of up to P5-billion which began on September 20, 2017. The old exercise ran for 24 months, during which period the company has bought back a total of 309 million shares, accounting for about 3% of its pre-buyback issued and outstanding shares.
“The share buyback is also EPS-enhancing and should improve our share values moving forward,” added Tan.
AGI recorded first half 2019 attributable net income of P8.1-billion, an increase of 4% year-on-year. This was achieved on the back of a 15% improvement in consolidated revenues to P82.8-billion.
The Group also announced earlier that it is allocating P410-billion for capital expenditures (CAPEX) program from 2020 to 2024. The amount is exclusive of this year’s budget of P85-billion. The bulk, or around 73% of the Group’s five-year CAPEX, will be spent for Megaworld Corporation’s residential development projects, as well as the aggressive build out of Megaworld Premier Offices, Megaworld Lifestyle Malls, and its home-grown hotel brands. Another 15% of Group CAPEX will be allocated for Travellers International Hotel Group, Inc., which is expected to undertake the development of its next integrated resort in Westside City along the famed Manila Bay area.
