CEN
15/10/2015 15:14
BUYBACK
PRICE SENSITIVE
REL: 1514 HRS Contact Energy Limited
BUYBACK: CEN: Contact Energy announces on-market share buyback
MEDIA RELEASE
For immediate release
Thursday 15 October 2015
Contact Energy announces on-market share buyback
Contact Energy Limited (Contact) has announced today that it plans to
undertake an on-market share buyback of up to 25 million ordinary shares for
an aggregate purchase price of up to NZ$100 million during the remainder of
the 2016 financial year. The ordinary shares will only be acquired on the NZX
Main Board.
"With no near term plans for large capital investments, we have the capacity
to return additional cash flow and we believe a share buyback is an efficient
way of distributing funds to shareholders", said Contact Chief Executive,
Dennis Barnes.
In May 2015 Contact announced a revised distribution policy to target an
average ordinary dividend equivalent to approximately 100% of Underlying
Earnings after Tax (previously 80%). In the event that free cash flow exceeds
ordinary dividends Contact will make additional distributions. The
confirmation of the on-market share buyback is consistent with this policy.
The key principles under which the buyback will be executed are summarised
below:
o Shares purchased by Contact will be cancelled on acquisition, and the
number of shares on issue reduced accordingly.
o Contact will only buy shares through NZX's Clearing House during normal
trading hours (i.e. there will be no off-market transactions).
o Contact will adhere to an established set of principles that will ensure
the buyback does not distort the market price for shares.
o Contact will keep shareholders fully informed and monitor compliance with
its various information disclosure requirements throughout the buyback
period.
Contact remains committed to maintaining an efficient capital structure and
to an investment grade credit rating. The cash generated from the business,
flexibility in the funding portfolio and current credit rating places Contact
in a strong position to withstand variable market conditions.
First NZ Capital has been appointed to act as Contact's broker in connection
with the buyback.
ENDS
Investor enquiries: Fraser Gardiner +64 21 228 3688
Media enquiries: Shaun Jones +64 21 204 4521
End CA:00271815 For:CEN Type:BUYBACK Time:2015-10-15 15:14:23
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
