Posted by Default Admin on 30 August 2016
Share Buyback
NEW ZEALAND OIL & GAS ANNOUNCES TENDER OFFER
New Zealand Oil & Gas intends to buy back up to 40 million shares through a tender offer on 16 September 2016.
Details of the offer are set out in a letter to shareholders, which shareholders are being urged to consider.
The maximum price the company intends to pay in the tender is 55 cents, which is a premium of 13.5% to the 30-day weighted average market price and more than 14% above the average price paid by the company for shares purchased this year. Approval to buy back up to 64 million shares was obtained by more than 73% of shareholders who voted at a special meeting on 28 August 2015.
Acting chief executive Andrew Jefferies says the tender offer creates a liquidity event that should spur trading.
'The company has been buying back its shares this year but, because the shares trade in small volumes, it would take years to complete the buy back at current rates of progress.
'Shareholders who wish to sell will have the opportunity at a price that represents a premium to recent share trading.
'The buy back is part of the company's capital management that improves the efficiency of our balance sheet. All remaining shareholders benefit from that.
'The company is reviewing acquisitions of assets coming to market. The asset we understand best is our own, and therefore it makes sense to buy our shares when we see
value,' Andrew Jefferies says.
New Zealand Oil & Gas intends to continue its on-market buy back program following the tender.