8990 Holdings Inc. on Monday suspended its P2 billion share buyback program and focus its resources on employee support and fund operational activities.
The listed mass housing developer said suspending the repurchase program started on 4 February 2020 comes “in light of the (new coronavirus disease 2019) pandemic.”
So far, 8990 said it has repurchased 126,591,700 of its shares for a total of P1,806,540,154.
“(The) management believes this suspension to be the prudent course of action given the uncertainty and challenges that may result from this pandemic,” 8990 said.
“This, however, is without prejudice to the resumption of the program consistent with the terms and parameters set by the board, as and when more favorable circumstances warrant the same,” it added.
8990 said it will continue to monitor the situation and take appropriate action to optimize its cash flow and minimize costs.
The buyback program, seen to boost 8990’s shareholder value, was intended to run up to 1 August 2020.
The company targets P20 billion in revenues in 2020 and set aside P12 billion as capital spending this year for various residential projects.
8990 booked 23 percent higher net earnings in the first nine months of 2019, to P4.2 billion, as its revenues jump 21 percent to P10.5 billion, driven by real estate sales, particularly Urban Deca Homes Manila.
Shares of 8990 were traded 4.16 percent lower as of Monday, to P11.98 apiece.