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THE country’s largest-mining company, as well as
its biggest geothermal energy producer unveiled plans to buy back
their respective shares to boost prices, which have been sagging
amid the volatility in financial markets worldwide.
In a disclosure, Philippine
National Oil Co.-Energy Development Corp. (PNOC-EDC) said it is set
to buy back a portion of its listed shares for the benefit of a
stock option plan for its personnel.
Erudito S. Recio, PNOC-EDC
investor relations manager, said the company’s board recently
approved a share buyback program that will target up to P4-billion
worth of its shares, representing 4 percent of its market
capitalization.
PNOC-EDC’s buyback program,
which will be carried out within a two-year period from March 26,
2008, to March 25, 2010, will allow it to implement an executive and
employee stock ownership plan.
Besides this, the move also aims
to create and enhance shareholder value “since in management’s
opinion, current market prices do not reflect the true value of the
company’s shares,” Recio said.
PNOC-EDC is the country’s largest geothermal energy producer with
a total capacity of about 1,200 megawatts. A former subsidiary of
state-owned PNOC, majority control of the company was earlier
acquired by a consortium led by Lopez-controlled First Gen Corp. in
an auction late last year for P58.5 billion.
In a separate disclosure, Philex
Mining Corp. likewise announced that it will undertake a share
buyback program targeting 10 percent of its outstanding shares in
the open market as part of a capital management program to enhance
shareholder value.
The company said the program will
continue until the number of shares earmarked has been fully
repurchased.
Philex is the country’s biggest
gold and copper producer. It recently expanded its portfolio into
energy to sustain future operations not only in mineral exploration
but in petro-energy as well.
PNOC-EDC’s shares closed flat
Wednesday at P5.5, while Philex climbed to P6.10 from P6 in the
previous session.
--Euan Paulo C. Ańonuevo
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