Aboitiz Power Corp. on Wednesday brushed aside notions of delisting from the Philippine Stock Exchange (PSE) with the purchase of 11,407,500 of its own shares on Tuesday.
It issued a statement saying the buyback was simply an opportunity to repurchase shares whose “current share price range does not reflect the intrinsic value of the company and its future business prospects.”Aboitiz Power acknowledged the buyback can push its public ownership below the minimum level required by the Philippine Stock Exchange index (PSE) to remain a listed company.
According to officials, the company said its fundamentals remain intact and that the buyback program will create further shareholder value.
“Even if our market float is at 19.9 percent, Aboitiz Power remains a constituent of the PSEi and that the next review of its members will be done after December 2023,” the company said, emphasizing that its public ownership level exceeds the 10 percent minimum required for it to remain listed in the PSE.
Aboitiz Power is developing a portfolio of energy projects involving 9,200 megawatts (MW) worth of energy projects over the next ten years.
Last year, it reported net income of P27.5 billion, 32 percent higher than the previous.
Its growth continued in the first half this year with net income after tax of P17.8 billion, 79 percent higher than last year.
“With a pipeline of about 1,000 MW of new renewable energy capacity, we are well on our way to contribute an additional 3,700 MW of clean electricity… With our strong track record of NIAT performance, the ability to deliver both renewable and thermal power generation projects and reliable growth from our distribution utilities, we are in a good position to create long-term shareholder value,” said Manny Rubio, Aboitiz Power chief executive officer.
