MANILA, Philippines - Aboitiz Equity Ventures Inc. (AEV), the investment holding company of the Aboitiz Group, has further bolstered its cash reserves and working capital after raising fresh funds from the sale of treasury shares.
AEV said yesterday it raised P276.65 million from the sale of 5.086 million treasury shares at P54.40 apiece.
The conglomerate’s board in August last year approved the sale of 50 million treasury shares either in tranches or in a single block at prevailing market prices, proceeds of which will be used to build up the company’s cash reserves, working capital and for other general corporate purposes.
Given AEV’s prevailing stock price of P56 per share by the time the selling of treasury shares was approved, the conglomerate was looking to raise as much as P2.8 billion from the sale.
The latest tranche of treasury shares were sold based on AEV’s stock closing price of P54.40 on Tuesday.
Of the 50 million treasury shares to be sold, AEV said 21.794 million shares has already been purchased to date, providing the conglomerate with P1.2 billion in total proceeds so far.
AEV in September last year sold in tranches 16.71 million shares at P55.25 each.
“Remaining balance of treasury shares authorized to be sold stand at 28,205,014 shares,” AEV said.
AEV, a firm listed on the local bourse in November 1994, has investments in power, banking, real estate and food.
The conglomerate is the largest shareholder of UnionBank, one of the country’s largest commercial banks, offering a wide range of quality financial products and services to retail customers, middle market and corporate clients, and major government institutions.
In power, the Aboitiz Group is one of the leading renewable energy producers in the country.
AEV’s food subsidiary, Pilmico Foods Corp., is one of the largest manufacturers of flour and wheat by-products.