SBS Philippines okays $4m share buyback, $50m debt deal

Visual from the company website

SBS Philippines Corp, a listed chemical traders and distributor firm diversifying into property and investment business, has launched a $4 million (P200 million) buyback programme and approved a $50 million (P2.5 billion) debt agreement with Security Bank Corp.

SBS disclosed on Wednesday (April 12), that the share buyback programme will replace the previous mandate while its P2.5 billion agreement​ with Security Bank is a five-year fixed interest term loan.

“The buyback programme is intended to enhance shareholder value, confidence, and strengthen the fundamental value of the company’s shares,” SBS said in its statement.

To be undertaken in open market within the Philippine Stock Exchange, transactions of shares repurchases will run from April 18, 2017 until the amount earmarked for the programme has been fully utilized.

“The programme will be funded by internally generated funds from its unrestricted retained earnings and is not expected to affect any of the company’s existing or prospective projects and dividend policy,” SBS added.

Repurchased shares will be held as treasury shares and based on the last trading price of P5.98 per share last April 10, this will approximately involve some 33,444,816 common shares or about 2.79 per cent of SBS’s issued share capital.

Since the start of the share buyback program in November 2016, SBS has purchased a total of 30,959,600 common shares for a total value of about P200 million.

As for the P2.5 billion loan, it is offered at a fixed preferential interest rate with a two-year grace period on principal amortizations.

The loan will be used to bankroll purchases of property related investments of the SBS group of companies in line with the diversification strategy to increase the property-related investments portfolio of the group.

SBS recently announced plans of venturing into property and investments​ to provide balance to counteract some of the fluctuations in the chemical trading business.

Also Read:

Chemical trading firm SBS Philippines diversifies into property, investments

Philippines: Security Bank gets $782m equity investment from Bank of Tokyo-Mitsubishi

SBS Philippines buys stake in four property holding firms

SBS Philippines divests 35% stake in real estate firm Neschester for $1.2m

SBS Philippines raises $22m from IPO, shares soar nearly 50% on debut

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.