By DANIEL RIORDAN
Infratil is increasing the size of its share buyback to allow it to acquire up to 18.5 million (about 10 per cent) of its shares.
The listed infrastructural investor - which has stakes in Wellington Airport (66 per cent), Port of Tauranga (24.6 per cent) and TrustPower (25.8 per cent), among other investments - had announced in March that it would buy back up to 9.47 million shares in the 12 months to March 2001.
Chairman Kevin O'Connor said yesterday that the company had so far bought back 3.5 million shares, just under 2 per cent.
Shares in the extended buyback could be bought off-market for no more than 135 cents, but there was no maximum price for on-market purchases.
Shares may be acquired on-market between July 15 and June 23, 2001, and off-market between August 7 and June 23, 2001.
Infratil shares were trading at 107 cents when the initial buyback was announced in March.
They closed yesterday at 115 cents.
Mr O'Connor said the decision to boost the scope for the buyback did not reflect the absence of good investment opportunities, but rather gave the company an added investment option to enable the best use of its capital.
All Infratil's core investments were performing to or above expectations.
Infratil had taken steps to exit from the electricity line industry, as required by the Electricity Industry Reform Act, and was well advanced in developing new opportunities. Natural Gas Corporation "was a disappointment" but was now on the way to resolution.
Infratil spent $52.9 million for a 6.7 per cent stake in NGC but chose to quit that stake after disagreeing with NGC over the price the gas company paid for a 73 per cent stake in TransAlta.
Infratil is arranging with NGC an arbitration process to determine the price at which NGC must buy back Infratil's stake.
Meanwhile, Infratil's bond programme, to retire debt and for long-term investments, has been well received.
Infratil boosts buyback
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