Gokongwei-led Robinsons Land Corp. has approved a share repurchase program worth P3 billion, reinforcing the company’s strong cash position despite the ongoing coronavirus crisis.
Share buybacks have become the most common way of returning cash to investors at many companies.
“The board unanimously approved the stock buyback program. The recent REIT listing of RL Commercial REIT (RCR) and its subsequent strong performance, crystalizes the value of RLC”, said Frederick D. Go, president and CEO of RLC.
RLC has a strong balance sheet with total assets of P214 billion and a low debt-to-equity ratio of just 39 percent as of June 30.
The real estate arm of the Gokongwei family raised P23.5 billion from the oversubscribed initial public offering of RCR, which would be deployed for various businesses in the next 11 months.
RLC closed 6.46 percent higher Friday at P18.80. Its market capitalization stood at P91.7 billion.
The share buyback program will not involve any active and widespread solicitation from the stockholders and will be implemented in the open market through the trading facilities of the PSE. Moreover, the share buyback program will not affect any of the Company’s prospective and existing projects and investments.
Shares purchased under the buyback program will be booked as treasury shares of the company.
SOURCE: Bilyonaryo
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