By Juzel L. Danganan
MANILA, July 3 (PNA) — The First Philippine Holdings Corporation (FPH) is extending the implementation of the company’s buy-back program from July 2014 till 2016, based on a disclosure at the Philippine Stock Exchange (PSE) Thursday.
”The Board of Directors approved today an extension of FPH’s common shares buy-back program from July 2014 to July 2016,” it said.
The disclosure said that the program will not directly affect the company’s current projects, along with its future prospects.
The buy-back program will take effect through the open market in the PSE, as implemented by the designated officials of the company. They are Chairman and Chief Executive Officer (CEO) Federico Lopez, president and Chief Operating Officer (COO) Elpidio Ibañez or the Executive Vice President (EVP), Treasurer and Chief Finance Officer (CFO) Francis Giles Puno.
Through the program, the company will be able to fund its future growth and investments.
The two-year buy-back program was first implemented by FPH’s Board of Directors in July 2010 and was extended yet again from July 2012 to July 2014.
Formerly, the Board authorized the P6-billion buy-back transaction, but had only purchased P3.35 billion worth of stocks, allowing the company to purchase the remaining P2.65 billion shares. Currently, FPH has a total stock of 552.77 million shares in the market.
The buy-back program is the re-purchase of stock from public individuals, in which the transaction increases the trading price of the company in the stock market. It is commonly implemented when stocks are undervalued.
On the other hand, the company authorized the declaration of cash dividends for common shares last May 8, priced at one peso per share.
For the 1st quarter of 2014, the net income of FPH was at P2.7 billion, minimized by P1.1 billion from the P3.8 billion for the same period in 2013.
First Philippine Holdings Corporation holds stakes in the energy sector through its investments in the First Gen Corporation, Energy Development Corporation, First Philippine Industrial Corporation and the Manila Electric Company (Meralco).
The company also has shares in Rockwell Land Corporation. (PNA)