NZOG to offer 40 million share buyback
Timed for September 16.
New Zealand Oil & Gas [NZX: NZO] is to make a tender offer to shareholders to accelerate the buyback of up to 40 million shares, the company announced.
Timed for September 16, the initiative is intended to "create a liquidity event that should spur trading" and allow shareholders to cash out at a premium to the current share price of 50c a share, unchanged since yesterday.
"The maximum price the company intends to pay in the tender is 55c, which is a premium of 13.5% to the 30-day weighted average market price and more than 14% above the average price paid by the company for shares purchased this year," the company said in a statement to the NZX.
Approval to buy back up to 64 million shares was obtained by more than 73% of shareholders at a special meeting a year ago but the stock traded in such small volumes "it would take years to complete the buy back at current rates of progress," acting chief executive Andrew Jefferies said.
"The company is reviewing acquisitions of assets coming to market. The asset we understand best is our own, and therefore it makes sense to buy our shares when we see value," Mr Jefferies said. On-market buy backs are intended to continue after the tender.
(BusinessDesk)
Click the hamburger symbol top right of our homepage to access the Rich List 2016 and other sections.
Pattrick Smellie
Tue, 30 Aug 2016
Tue, 30 Aug 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
NZOG to offer 40 million share buyback
61224