Contact Energy has completed its $100million share buyback.
In May last year, Contact Energy ditched an unpopular option to invest in Pacific Rim geothermal power, instead opting to deliver shareholders a $367million special dividend.
Earlier, in mid-February, Contact had taken its shareholders and the market by surprise, announcing it was looking to invest $1billion, generated over five to eight years, in Pacific Rim geothermal markets, a sector where its major shareholder, Australian company Origin Energy, has Indonesian geothermal interests.
Following a predicted shareholder backlash, Contact went for the special dividend and then announced in October last year the surplus cash would be returned to shareholders, via buybacks, for an aggregate price up to $100 million.
Contact said yesterday it had completed the on-market share buyback for the 2016 financial year, of 20.7million ordinary shares, acquired for a total $100million, or $4.83 per share.
During the past year, Contact shares had a high of $6.38 and low of $4.35 and were down 15.5% for the year, and traded down 5c yesterday, at $4.98, following the announcement.
