CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) will repurchase up to P2 billion shares to enhance shareholder value and to provide stockholders the opportunity to liquidate their investments.
Semirara Mining informed the Philippine Stock Exchange (PSE) on Thursday that the board of directors has approved the terms and conditions of its buyback program.
Beginning December 8, SMPC will buy back up to P2 billion worth of common shares based on trading price at the open market through the PSE’s trading facilities.
“The Corporation cannot determine at this time its capital structure after the buy-back program since the actual number of shares to be repurchased will depend on the total buy-back price of the shares,” it said.
“The buy-back is not an active and widespread solicitation, nor will it involve [a]substantial number of shares, and will not adversely affect the Corporation’s prospective and existing development projects,” it said.
Semirara Mining, a unit of DMCI Holdings, Inc. is engaged in exploring, developing, and mining the coal resources on Semirara Island in Caluya, Antique.
Last month, the company said it has already spent P2.8 billion to rehabilitate and expand the life span of its two power plants managed by Sem-Calaca Power Corp. (SCPC). Another P2.2 billion of contracts related to the life extension program of the two facilities has been awarded to several local and foreign suppliers.
The program, which will end in 2019, seeks to bolster the generating capacity of both facilities to 600 megawatts and prolong their economic life by about 20 to 25 years. The three-year rehabilitation plan has a budget of about P8 billion.
Units 1 and 2 have been operating for 33 years and 21 years, respectively.
“We are upgrading the equipment to get the reliability, performance and efficiency needed to support our continuing commercial requirements,” Semirara Mining President and Chief Operating Officer Victor Consunji previously said.