Aboitiz Equity raises P91.8M from sale of treasury shares

Aboitiz Equity Ventures Inc. (AEVI), a listed investment holding company of the Aboitiz family, raised about P91.8 million from the sale of treasury shares.

In a disclosure to the Philippine Stock Exchange, AEVI said it sold 18 million from its treasury shares at the price of P5.10 per share.

Proceeds from the offering may be used to fund working capital requirements or investments in power generation.

AEVI posted a net income of P1.56 billion in the first half this year or a decline of six percent due to lower earnings from its banking, food and transport units. In the second quarter alone, AEV earned P906 million, down by 13 percent from the previous level.

AEV’s power group, consisting of distribution and generation, contributed P965 million.

As for its banking business, Union Bank of the Philippines contributed P495 million or a 20-percent decline from the previous level.

AEV’s food group, on the other hand, chipped in P199 million, almost six percent lower than the year earlier figure. This was attributed to higher raw material costs in its flour and feeds businesses, as well as a softer market for its flour and swine.

Meanwhile, the transport group (under Aboitiz Transport System Corp.) contributed a net loss of P1.1 million in the first six months, a reversal of the P214-million net income reported the previous level. This was attributed to higher fuel costs and the decline in the company’s international charter business.