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UPDATED: Infratil [NZX: IFT] completed its on-market buyback at $2.38 a share, or a total of $59 million.
The shares fell 1.7 percent to $2.34 when they resumed trading, having been halted for the buyback. The 24.8 million shares acquired by brokerage First NZ Capital on behalf of Infratil will be held as Treasury stock, shrinking total ordinary shares to about 561 million from 586.7 million.
Infratil had been willing to pay up to $2.60 a share though as a result of demand it got the buyback away at a lower price and subject to scaling. The stock is rated a 'buy' based on six analysts polled by Reuters, with a median price target of $2.81
The company is flush with cash after teaming with the NZ Superannuation Fund to raise $840 million from the selldown of Z Energy in August, even after delaying the $64 million buyback in order to buy about 20 percent of retirement village operator Metlifecare in October.
(BusinessDesk)
EARLIER: Brokerage First NZ Capital has been tapped to buy up to 24.8 million Infratil [NZX: IFT] shares for as much as $2.60 apiece for the investment company's on-market buyback.
Infratil's shares last traded at $2.38 and have gained 4.9 percent this year. The stock is rated a 'buy' based on six analysts polled by Reuters, with a median price target of $2.81
The company is flush with cash after teaming with the NZ Superannuation Fund to raise $840 million from the selldown of Z Energy in August, even after delaying the $64 million buyback in order to buy about 20 percent of retirement village operator Metlifecare in October.
The stand in the market will be conducted under the ticker IFTX and start at midday. At that time trading in Infratil's ordinary shares will be halted until the final price in the buyback is announced.
(BusinessDesk)
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UPDATED: First NZ Capital stands in the market for Infratil buyback at up to $2.60 a share
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