Aboitiz Power moves to buy back shares; to use internal funds

Aboitiz Power Corp. said Wednesday its board approved a plan for the energy firm to buy back its own shares using internally-generated excess cash.

The power arm of the Aboitiz Group left it to its management to decide when to acquire company shares “as and when market prices dictate and as opportunities arise.”

It didn’t provide a budget for the shares buyback plan nor a reason why it is repurchasing its shares. Usually, however, companies buy back its own shares to shore up shareholder value.

Over the last 52 weeks, Aboitiz Power shares have traded within the P30 and P40.10 range.

Aboitiz Equity Ventures Inc., the parent company of Aboitiz Power,  has been buying back its own shares as well as those of Aboitiz Power and Union Bank of the Philippines using internally-generated funds.