Air NZ to buy back shares
Air New Zealand is buying back 3 per cent of its shares over the next year.
The airline said the on-market buyback on the NZX and ASX would start on October 4 and will finish on September 27 next year.
It will be buying back just over 33 million shares.
The Government which owns 73.09 per cent will not be selling any of its stake.
Its shares rose four cents today to $1.14.
"The Air New Zealand board has decided to undertake the share buyback as it believes that the current share price does not fairly reflect the underlying value of Air New Zealand’s shares."
The announcement to the NZX was made today while the company is conducting its annual meeting in Christchurch.
To ensure the buyback did not "unduly influence the price of its shares" the airline company set out rules that would apply:
* Air NZ will not purchase shares at a price that is higher than five per cent above the volume weighted average market price for the previous five days.
* It will only purchase shares through the NZX and ASX order matching systems;
* The company will not buy more than 25 per cent of the trading volume over any five trading-day period;
* It will not be the opening trade on any day or buy in the last 15 minutes of the trading day.
* It will not buy shares through more than one broker on any trading day.
* However, the company may change the conditions or add to them, Air NZ said today.
The shares would be held as treasury stock and could be used for employee share-based compensation plans.