DigiPlus Interactive is reinstating its share buyback program following approval from the company's board, prompted by shareholder requests to increase the amount of repurchased shares. In their communication, the shareholders urged the board to implement a significant buyback initiative, stating that this opportunity represents "by far the greatest value creation opportunity available to shareholders today."
An official statement submitted to the Philippine Stock Exchange confirmed the board's decision to revive this program, which initially launched in 2005. The move is in response to an open letter dated July 6 from Betplay Capital Foundation, ZJ Foundation, and MJ Foundation, which are investment firms owned by the Juroszek family in Poland. These firms hold shares of DigiPlus and deemed the current valuation of the company's stock to be below its fair market potential, citing its leading position in the Philippine gambling market.
The letter asserted, "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 pointed to peer multiples, suggesting DigiPlus shares could reach around PHP30, indicating an upside of over 150 percent from the current price.
They also highlighted DigiPlus's financial capability to execute a larger buyback, noting the company has approximately PHP20 billion available in its accounts. This revival of the buyback program aligns with the initiative initially announced in July.
