DigiPlus extends share buyback, keeps P5.4B ready for stock purchases

Eusebio Tanco 

DigiPlus chair 

DigiPlus Interactive has extended its share buyback program for another year, giving itself fresh authority to keep buying its own stock using the P5.36 billion left from its original P6 billion budget.

The previous authorization expired after its initial 12-month period, prompting the board to revive the program effective July 9 for another year. 

A share buyback lets a company buy back its own stock from investors, which can help support the share price by reducing the supply of shares available for trading. 

Companies often use buybacks when they believe their shares are undervalued or when they have excess cash they want to return to shareholders. 

Since launching the buyback, DigiPlus has spent P644.6 million to repurchase 29.77 million shares, leaving about P5.36 billion still available. 

DigiPlus shares are trading at about P12 each, down over 66 percent in the past 12 months. 

 —Edited by Miguel R. Camus