It was back in June that Andrew Tan stepped aside from his role as CEO of the Alliance Global Group, Inc. (AGI), to let his son Kevin take the reigns. Now it appears he’s back, as he leads a working group to purchase back extra AGI stocks during the following 12 months.
The plan follows the initial repurchase program of AGI which began in September 2017, when Php5 billion ($96 million) shares were repurchased by the company. The firm was willing to buy 309 million stocks, about 3% of the stock capital issued.
Kevin Tan clarified in a declaration about the first repurchase round: “We believe in our stock’s underlying value, which is backed by our strong franchises across all our business segments, years of profitable operations and continued expansion.”
The fresh round is anticipated to take place over the next 12 months, costing Php2.5 billion ($48 million). Tan described the fresh programme, “We continue to pursue a share buyback because we believe in our stock’s underlying value, which is backed by our strong franchises across all our business segments, years of profitable operations, and continued expansion thrust.”
AGI’s interests include housing projects, restaurants, office space, and moles in vast regions of the business world. They have recently announced that they have assigned Php410 billion ($7.85 billion) that was put by to spend on resources over the next five years
The firm also continues the Westside City construction, a Php121 billion ($2.32 billion), a 31-hectare township situated in the Entertainment City district of Manila. This will be the site of the fresh Westside City Resorts World, an integrated resort and casino facility. The Travellers International Hotel Group owns the Westside City Resorts World.
The intriguing aspect of the deal is that behind the second round of repurchasing is a conglomerate headed by Andrew Tan. This is anticipated to boost the company’s income whilst also dramatically increase the value of its shares.
AGI lately announced that in the first 6 months of this year they had reported an attributable net income of $169 million (Php8.1 billion). This is a rise of more than 4% compared to the previous period of 2018, giving them a Php82.8 billion ($1.59 billion) consolidated income.