DigiPlus Interactive has reinstated its share buyback program after the company’s board gave its approval in response to shareholder requests to increase the number of shares repurchased. In a statement to shareholders, the board acknowledged the need for a robust buyback initiative, highlighting that the current market conditions provide a prime opportunity for value creation for investors.
This revival follows an open letter dated July 6 from the Betplay Capital Foundation, ZJ Foundation, and MJ Foundation, all investment firms linked to the Juroszek family in Poland, who are shareholders in DigiPlus. They articulated that the company's shares are currently undervalued, especially in light of DigiPlus's leading position in the Philippine gambling sector.
The firms wrote: "The shares are so far below any reasonable estimate of fair value that buying them back is worth more to shareholders than any other use of that capital we can identify."
Investors estimate that applying average multiples from comparable companies indicates a potential share value of around PHP30, suggesting more than a 150 percent increase from the current trading price.
Furthermore, the group asserted that DigiPlus is financially well-positioned to undertake a significant buyback program, citing available capital of approximately PHP20 billion. The newly adopted program builds on the earlier buyback plan announced in July.
