VMC Buys Back Shares

Victorias City—(PHStocks)—Victorias Milling Co. Inc. (PSE: VMC) is acquiring about 365 million common shares. The management believes that the stock repurchase will enhance shareholder value.

Effectively, the company will be increasing earnings per share to about PhP0.42 from PhP0.34. VMC management constantly pursues ways to enhance shareholder value not only by continuing excellence in operations but also by cutting costs as highlighted in this year’s net income surpassing the PhP1 billion peso mark, a record in VMC’s 97 year existence.

The stock repurchase sends a strong signal that management believes that the future of the company continues to be bright, so much so that it is willing to invest in itself. The company further says that the funds allocated for this program are sufficient after considering this crop year’s capital expenditures and cash receipts from operations.

In the last three years, VMC has embarked on a program to pre-pay all loan obligations under the rehabilitation plan approved by the SEC. On May 31, 2013, VMC has already fully paid in advance its restructured loans in the amount of Php4.4 billion. VMC has already fully redeemed the convertible notes in the hands of its original noteholders.

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