Ayala expands coverage of share buyback

MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, is expanding the coverage of its share buyback program, which has an outstanding approval of P20 billion.

In a stock exchange filing, Ayala said its board approved the widening of the coverage of the company’s share buyback program to include its purchase of shares of its publicly listed subsidiaries, as endorsed by its finance committee.

Ayala’s board approved a buyback program on Dec. 5, 2019, allocating P10 billion to purchase Ayala shares.

On Dec. 10, 2021, the company decided to allocate an additional P10 billion to buy back its shares on top of the existing P10 billion share buyback program.

A share buyback enhances shareholder value and reflects the company’s confidence in its shares.

It is usually done whenever a listed firm deems its stock is trading at a price discount or undervalued.

Ayala’s shares closed at P519 on Wednesday, while its 52-week high reached P740 per share and its 52-week low hit P506.50.

Ayala, one of the largest conglomerates in the country, has investments in various sectors such as real estate, banking, telecommunications and renewable energy.

It likewise has a growing presence in health care, mobility and logistics as well as investments in industrial technologies, education and other ventures.

Ayala was the No. 1 company in the Philippines for the third straight year in TIME’s recent World’s Best Companies list, ranking No. 210 among the 1,000 firms included this year.

The conglomerate was recognized among the world’s best for high employee satisfaction, strong revenue growth, and robust environmental, social  and governance practices.