MANILA, Philippines - Armed with excess and unallocated cash, Philweb Corp. told the Philippine Stock Exchange it would undertake a share buyback program.
“The company’s stock is currently trading at such low levels that it definitely makes sense for Philweb to take advantage of the opportunity and scoop up the available shares from the open market and enhance shareholder value,” said Philweb president Dennis Valdes.
The company’s board has delegated to management the timing, number of shares, price and other terms concerning the buy back. Management was tasked to determine what is best and appropriate for the company.
In approving the buy-back program, the Philweb board considered two principal points: the company’s excess cash currently earning relatively low yields from its money market placements and the promising growth prospects for the company, especially in the Asia-Pacific region.
Given these considerations, it was decided that a share buyback program is the most logical course of action for the company, Philweb said.