SEMIRARA Mining and Power Corp. (SMPC) said its board in a special meeting on Thursday approved a buyback program of up to P2 billion worth of common shares.
The program aims to enhance shareholder value and to provide stockholders an opportunity to liquidate their investments, the Consunji-led company told the stock exchange.
SMPC said shares in the buyback program were based on the trading price at the open market through the trading facilities of the Philippine Stock Exchange beginning Dec. 8.
“The Corporation cannot accurately 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 buyback price of the shares,” it said.
Before the buyback program, SMPC’s capital structure is made up of 10 billion authorized capital stock, 4,261,145,720 issued shares, 4,261,145,720 outstanding shares and 3,463,570 treasury shares.
“The buyback is not an active and widespread solicitation, nor will it involve substantial number of shares, and will not adversely affect the Corporation’s prospective and existing development projects,” it added.
On Thursday, shares in SMPC surged 7.04% to close at P38 each.
In its trading recap for the day, RCBC Securities, Inc. said SMPC shares jumped “as investors turned optimistic on news that there is a split in the RCBC Securities added the listed firm’s buyback plan may have helped the stock’s rise. It said SMPC current market capitalization is at P151 billion.