Philippines-listed DigiPlus Interactive Corp announced on Monday a share repurchase programme of up to PHP6.0 billion (US$106.1 million) worth of the company’s common shares.
“The share repurchase programme is valid over a 12-month period and can be renewed, subject to approval of the board of directors,” stated the company in a filing to the Philippine Stock Exchange.
DigiPlus is a Philippine holding company with investment in gaming and leisure businesses, including bingo services and a digital sportsbook platform.
In the Philippines the brand runs BingoPlus, described as that country’s first government-approved online bingo platform. It also operates ArenaPlus, a sportsbook; and GameZone, a platform for casual and arcade gaming.
In Monday’s filing, the firm said the share buyback programme highlighted the “company’s strong balance sheet and commitment to maximising long-term shareholder value”.
The announcement cited DigiPlus’ chairman, Eusebio Tanco, as saying the share repurchase programme demonstrated the board’s “confidence in DigiPlus’ long-term growth and solid fundamentals”.
“By strategically deploying our capital through this buyback, we are sending a clear signal that DigiPlus is committed to delivering sustainable returns for shareholders while remaining well-positioned to pursue expansion and innovation,” he added.
According to the filing, the share buyback programme will be funded through the company’s internally generated cash flows.
“DigiPlus remains well-capitalised, balancing disciplined capital management with its investments in growth, technology, and new markets,” said the company.
DigiPlus experienced volatility in its stock price last week after news that the local government might introduce stricter policies regarding access to digital gambling platforms, as well as a possible tax move by the national authorities. The firm dismissed it as market speculation in a Friday statement.
DigiPlus’ stock price fell by 23.9 percent on Friday, to close at PHP29.50 per share. It was trading up 9.2 percent on Monday morning.
