Infratil will continue with $64 million buyback to bolster stock price

Friday 15th November 2013 1 Comment

Infratil, the listed infrastructure investor, will continue with a planned buyback worth as much as $64 million after putting the plan on ice last month while it mulled another transaction.

Infratil plans to buy as many as 24.8 million of its own shares at a maximum price of $2.60 per share through a tender process open to all shareholders on Dec. 5, the Wellington-based company said in a statement.

The company is undertaking the buyback in an attempt to lift the value of its shares closer to what it says is a more appropriate value.

Infratil delayed the buyback last month while it investigated taking a stake in retirement village operator and developer Metlifecare, along with the New Zealand Superannuation Fund. The partners who jointly purchased and then partially floated Z Energy will each have a 19.9 percent stake in Metlifecare.

Shares in Infratil last traded at $2.40, and have gained 5.7 percent this year.

BusinessDesk.co.nz

Comments from our readers

On 16 November 2013 at 8:23 pm Bill Sutton said:

I've been disappointed at the lack of strategic planning demonstrated by Infratil over this promised buyback. You'd like to think they could get their intentions sorted out before making a big buyback announcement to shareholders and the market. Those who increased their shareholdings, in anticipation of the promised buyback resulting in a price increase, had the rug pulled out from under them after only a few days. No doubt that has a lot to do with what's happened to the Infratil share price since. Not a good look.