MANILA, Philippines - First Philippine Holdings Corp. (FPHC) of the Lopez family has bought P86.3 million worth of its shares as part of its P6-billion buyback program.
In a disclosure to the Philippine Stock Exchange, FPHC said it purchased 1.5 million of its shares at P57 each or a total of P85.5 million. It also bought 14,890 shares at P56.95 apiece or P847,985.50 in total.
FPHC's board earlier approved a 2-year share buyback program of up to P6 billion, equivalent to 19% of the company's total outstanding common shares.
The buyback will end on July 12, 2011.
"The program is intended to strike a balance between enhancing the company’s capital structure and maintaining the ability to fund future growth and investments," the company said.
A listed company resorts to a share buyback scheme if its stock is substantially undervalued due to high volatility in market prices.
FPHC is primarily engaged in power generation and distribution, with strategic initiatives in manufacturing, property and infrastructure.
Shares of FPHC rose 0.7% to P57.40 on Wednesday.