SM Prime Holdings Inc., the property arm of the Sy Group, is the latest large company listed on the Philippine Stock Exchange to join the growing trend of share buybacks.
SM Prime, which owns shopping malls, commercial buildings, convention centers, and hotels, announced Tuesday that its board has approved a buyback program with a value ranging from P5 billion to P10 billion.
“The final terms and implementation of the program have been delegated to management,” SM Prime told the PSE.
At current prices, the maximum P10 billion allocation could repurchase approximately 376 million SM Prime shares, or less than 2 percent of the company’s outstanding shares.
Share buyback programs are typically adopted by listed companies to enhance shareholder value or to more effectively utilize funds when other investment options are limited.
Among the large companies with existing buyback programs are Ayala Land Inc., Universal Robina Corp., Alliance Global Group Inc., and Robinsons Land Corp.
