Alliance Global Group Inc. (AGGI) the investment holding firm of tycoon Andrew Tan, will implement a buyback program worth a total of P5 billion involving its own shares as well as that of its property arm Megaworld Corp.
In a disclosure to the Philippine Stock Exchange, AGGI said it has a consolidated cash position of about P32 billion, of which only about 16 percent or P5 billion will be set aside for the share repurchase program.
About P3 billion has been earmarked for AGGI’s share buyback while the balance of P2 billion will be used to repurchase Megaworld shares over the next 18 months.
“There are always opportunities in every situation, and in the current environment, we believe we can enhance shareholder value by buying our own shares. We believe in our capability to build businesses and thus contribute to the growth of the company and our country. This share buyback program clearly underscores our confidence in our strategy and the sustained long-term growth of Alliance Global,” said Tan.
Aside from real estate development, AGGI also has interests in liquor manufacturing through Emperador Distillers Inc. and quick-service restaurants through Golden Arches Development Corp., the Philippine franchise holder of global fastfood chain McDonald’s.
AGGI recently added hotel and tourism as the fourth and newest leg of its core businesses through Travellers International Hotel Group, Inc., a 50-50 joint venture with Star Cruises Ltd.
Travellers International will develop two large-scale leisure and entertainment cities in Metro Manila. Star Cruises is the third largest cruise line operator in the world and a member of the Malaysia-based Genting Group, one of the largest leisure and entertainment companies in the world.
“We strongly believe in the long-term prospects of our existing businesses. The next few years will be very exciting for AGGI as we continue to grow our existing businesses and catapult the company to a new level of growth as we chart a new path as a major player in the Philippine tourism industry,” Tan said .
AGGI has set a strong track record of spotting opportunities in the market and
transforming these opportunities into major business segments for the company. In the property
sector, Megaworld has risen from a small property developer in the late ‘80s into the country’s
largest residential condominium developer and BPO office builder and landlord.
In the beverage business, Emperador has successfully competed against centuries-old liquor firms to become the most profitable liquor company in the Philippines and the producer of the world’s largest selling brandy by volume sold.
With Travellers International, AGGI intends to make a mark as one of the top players in the local tourism and leisure industry. Plans include the establishment of 5,000 hotel rooms in the next few years, making it the largest hotel owner in the country.
AGGI is looking at another banner year with net earnings projected to grow 18.5 percent to P3.9 billion this year from only P3.29 billion in 2007.