Ayala Corporation is allotting another P2.5 billion for its share buyback program, doubling to P5 billion its budget for the program.

In a disclosure to the Philippine Stock Exchange Thursday, the firm said its executive committee has approved the expansion of its buyback program which was started in September 2007.

Ayala said that it has already bought back 7.5 million of its common shares under the program at an average cost of P322 per share for a total cost of P2.49 billion.

The buyback program aims to enhance shareholder value through the repurchase of shares whenever the stock is trading at a price discount perceived by the company not to be reflective of its corporate valuation based on the stock prices of the individual parts that make up the holding company.

“The program also provides the opportunity to repurchase shares when these are undervalued and sends a positive signal of the Company’s confidence in its own shares,” said the company earlier.

It noted that the program will not affect any of the Company’s prospective and existing projects/investments, including its ongoing liabilities management program.

“The program will not involve any active and widespread solicitation from stockholders. Instead, it is a marketoriented approach to benefit our shareholders and will be implemented in the open market through the trading facilities of the PSE,” Ayala said.