DigiPlus Interactive has reinstated its share buyback program following a decision from the company’s board, a move prompted by shareholders who requested the repurchase of a greater number of shares. In their communication, the shareholders expressed their belief that a significant buyback at current stock prices represents the best opportunity for value creation for shareholders today.
A statement submitted to the Philippine Stock Exchange confirms that the board has approved the initiation of this program, marking a revival of a strategy first introduced in 2005. This decision comes on the heels of an open letter dated July 6, issued jointly by investment firms Betplay Capital Foundation, ZJ Foundation, and MJ Foundation, all owned by the Juroszek family of Poland, who hold shares in DigiPlus.
The letter articulated the view that DigiPlus shares are currently undervalued, particularly given the company’s leading position in the Philippine gambling sector. Specifically, the investors noted, "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."
The investors indicated that based on average multiples of comparable companies, DigiPlus's shares could be valued around PHP30, signifying a potential upside of over 150% from the current market price. They also highlighted that DigiPlus has sufficient financial flexibility to support a larger buyback program, pointing out that the company holds approximately PHP20 billion in its accounts. This new buyback initiative is a follow-up to the plan first announced in July.
