SFA Semicon Philippines Corporation (Trading symbol: SSP) announced that its Board of Directors approved the implementation of a share buyback program of up to One Hundred Thirty Million Philippine Pesos (P130,000,000.00) — or nearly Two Million Five Hundred Thousand US Dollars (US$2,500,000.00) — worth of SSP’s common shares.
The share buyback program, which will be funded out of unrestricted retained earnings using the cash generated from revenues, aims to enhance shareholder value and to manifest confidence in SSP’s value and prospects through the repurchase by SSP of its shares of stock.
“The Board’s decision reflects SSP’s faith in the underlying value of its stock and the company’s value and prospects, as well as in the suitability of the Philippines as an investment host,” SSP Board Chairman Mr. Dong Hwan Im said.
The program is expected to commence on July 1, 2022 (with preparatory steps to implement the share buyback program being expected to commence on that day), and to end up on the full usage of the approved allocated amount for the share buyback, or as may otherwise be directed by the Board. The actual start of buyback will take place on such a date as will be determined by SSP.
The share buyback program will not involve any active and widespread solicitation from the stockholders and will be implemented in the open market through the trading facilities of the Philippine Stock Exchange. Purchased shares will be booked as treasury shares.
The selling price on the last sale transaction of SSP shares as of 5:00 p.m. on the previous trading day (June 28) before the Board Meeting was P0.93.
Mr. Im expressed hope that the general stock market will realize the underlying value of SSP shares as an investment and that the Philippine stock market will experience a recovery in the medium-term pending the resolution of global geopolitical tensions and uncertainties.
SSP is Clark Freeport Zone’s leading exporter of semiconductors with an aggregate export shipment value of US$4.16 billion in 2021. It reported gross revenues of US$347.02 million and net income after tax of US$12.74 million ending December 31, 2021.
