Mighty River Power said it would buy back up to $50 million
of its shares as part of its capital management plans.
The company's chairwoman, Joan Withers, said the board
believed that the buyback, representing less than 2 per cent
of its shares, was a prudent use of capital.
The purchase of up to 25 million ordinary shares could occur
from October 15 through October next year, the company said.
"The board's view is that a purchase of our shares, at this
time and at current market prices, provides a return above
the company's cost of capital and will be value-enhancing for
our shareholders," Withers said in a statement.
She said the board had taken into account the company's
out-performance against the 2013 initial public offer
forecast and the $100m lower than forecast capital
Shares in Mighty River Power have struggled to perform since
they listed on the NZX on May 10. The shares were issued at
$2.50 and shot as high as $2.73 on their first day of
trading. But in August, they sank as low as $2.17. Shares in
the power generator and retailer closed yesterday at $2.20.