CIC sets P510-M share buyback


CONCEPCION Industrial Corp. (CIC) on Wednesday said it will buy back up to P510-million worth of its own shares over the next three years to enhance shareholder value.

In a disclosure to the Philippine Stock Exchange, the company said its board of directors has approved a share buyback program that will be carried out within a three-year period.

The buybacks will start February 17 this year and will end on February 16, 2019.

The manufacturer of air conditioning units, freezers and refrigerators said it will limit its repurchase of shares to P100 million during the first year of its buyback program. For the succeeding years, it intends to repurchase up to 11 million issued shares equivalent to P410 million.

The shares to be bought back represent 3 percent of its current common market capitalization.

Known for its Carrier, Condura, Toshiba, and Kelvinator brands, the company’s stock was trading at P37.30 apiece as of Wednesday.

“The program will be executed through the open market by means of the trading facilities of the Philippine Stock Exchange and implemented by the chairman/CEO [chief executive officer]and chief financial officer of the company,” CIC said in a statement.

“The buyback program aims to enhance shareholder value through the repurchase of shares whenever the stock is trading at a price discount perceived by the Company as not reflective of its fair corporate value. It is not expected to adversely affect the Company’s ability to fund any of its prospective and existing projects’ investments,” the company said.

CIC reported a net income of P661 million in 2015, up 3.5 percent from the previous year, driven by strong sales performance in the fourth quarter.

Its fourth-quarter performance lifted full-year sales to P10.6 billion, up 15 percent from the P9.2 billion recorded in 2014.


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