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MANILA, Philippines – The Philippine Stock Exchange index (PSEi) will be revamped, with Aboitiz Power Corporation and Metro Pacific Investments Corporation (MPIC) being removed from the local stock barometer.
Aboitiz Power’s exclusion from the PSEi comes after the company purchased 11.4 million of its own shares as part of its buyback program. These purchases brought the company’s public float to below 20%, the level required to stay in the PSEi.
Aboitiz Power said the buyback program was initiated because the current share price range does not reflect the company’s intrinsic value and future business prospects.
“Aboitiz Power’s current public ownership levels far exceed the 10% minimum public ownership level required for it to remain listed in the Philippine Stock Exchange. Even with this stock buyback program, there is no intention to delist from the PSE, but merely to reward our existing shareholders with a larger share of a brighter future,” the company said.
Meanwhile, MPIC’s public float dropped to 2.78%, following its delisting and high acceptance rate of its P28.4-billion tender offer. MPIC is set to delist from the local bourse in October.
Aboitiz Power and MPIC will also be removed from the industrial and holding firms sector indices, respectively.
Replacing Aboitiz Power and MPIC in the PSEi are Enrique Razon Jr.’s Bloomberry Resorts and the Po family’s Century Pacific Food.
The PSEi is composed of a fixed basket of 30 companies, whose selection is based on specific criteria. It provides a snapshot of the market’s overall condition by gauging changes in the stock prices of the select listed companies.
Meanwhile, the PSE MidCap index will also see some changes. Cebu Air and DDMP REIT will be added to the index, replacing Bloomberry Resorts and Century Pacific Food.
The PSE Dividend Yield Index will include Citicore Energy REIT and Robinsons Retail Holdings, while Aboitiz Power and MPIC will be out.
The changes will take effect on Tuesday, September 26. – Rappler.com