DFC Holdings, Inc. is one of the private holding company of the Consunji family’s investment in the listed DMCI Holdings Inc. (DMC). The other being the DACON Corporation. DACON Corporation and DFC Holdings, Inc. are the principal stockholders of DMC, holding 51.51% and 17.92% of the outstanding shares of DMC as of end of 2019, respectively.
DFC Holdings, Inc.’s 17.92% holdings in DMC as of December 31, 2019 is equivalent to 2,379,799,910 shares. COVID-19 pandemic restrictions severely impacted most of the operations of DMC weakening its finances triggering the market to lower the valuation of DMC. DMC dip to a 52-week low of 3.10 a share.
The dip in the share price of DMC gave DFC Holdings, Inc. the opportunity to snap up DMC shares. All throughout 2020, DFC Holdings, Inc. bought a total of 55,425,100 DMC shares to increase its holdings to 2,435,225,010 shares as of end of August 2020. For August 2020 alone DFC Holdings bought 13,485,000 DMC shares costing it 50.5 Million Pesos.
It is not just the Consunjis who are putting faith into DMC, foreign and local institutional investors are also taking advantage in the weakness of DMC’s share price. On July 8, 2020 Regis Partners, Inc. crossed a buy trade of 230.14 Million DMC shares at an average price of 4.13 for a total of around 950.5 Million Pesos in behalf of presumably foreign institutional investors.
It is also reported that Philippine pension fund giants, Social Security System and Government Service Insurance System, holds 284.60 Million and 186.02 Million DMC shares as of July 31, 2020 respectively.
Disclaimer: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent perspective. Accuretti Systems Inc. holds DMCI Holdings, Inc. shares.