Megaworld launches P2-B share buyback, earmarks P2.21B from REIT for townships

PROPERTY DEVELOPER Megaworld Corp. has launched a P2-billion share buyback program while allocating P2.21 billion raised from its listed real estate investment trust unit Megaworld Real Estate Investment Trust, Inc. (MREIT) for township projects in Cebu, Palawan, and Bacolod.

- By Beatriz Marie D. Cruz

The buyback program will run for 24 months starting Thursday, the company said in a regulatory filing.

"The board believes that current market prices do not reflect the true value of the company’s shares and seeks to enhance shareholder value through a share buyback program," Megaworld said.

The program will be funded internally, with the purchased shares to be booked as treasury shares.

Share purchases will be made through the trading facilities of the Philippine Stock Exchange (PSE), it added.

As of end-August, the company had an authorized capital stock of P45.7 billion, consisting of 45.64 billion common shares with a par value of P1 apiece and six billion voting preferred shares with a par value of P0.01 each.

Of the authorized capital, 32.56 billion common shares and six billion preferred shares are issued and outstanding, with 1.19 billion treasury shares.