Meridian defends special dividends over buybacks, promises review
Some shareholders say they would prefer a share buyback scheme instead.
Meridian Energy [NZX:MEL] will review its decision to return capital to shareholders as special dividends carrying no imputation credits after feedback from some shareholders who would prefer a share buyback scheme instead.
Speaking at the company's annual meeting in Auckland, chairman Chris Moller said "we have received a variety of feedback from shareholders as to whether it is more appropriate to execute the capital management programme by the payment of special dividends, as we did, which will not have imputation credits attached, as opposed to a share buyback."
"As you would expect, opinion is divided as to the most appropriate method that the board should adopt," Moller said. "The chief executive and I have canvassed a wide group of shareholders and all perspectives will be discussed at the time the board looks at the matter again prior to the release of our interim results in February next year."
The Wellington-based company has embarked on a five-year capital management programme in which it intends, barring unforeseen investment opportunities or changes to the market, to return some $625 million to shareholders.
Moller said while the capital management programme could be suspended if adverse events dictated it, there was "nothing on the horizon" at present to suggest it would not continue next year.
Meridian shares rose 0.2 percent to $2.205 and have gained 28 percent since the start of the year.
(BusinessDesk)
Pattrick Smellie
Fri, 06 Nov 2015
Fri, 06 Nov 2015
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Meridian defends special dividends over buybacks, promises review
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