Mighty River to repurchase up to USD 41m of stock

Oct 11, 2013 - New Zealand power producer Mighty River Power (NZE:MRP) said on Thursday it will buy back up to NZD 50 million (USD 41m/EUR 31m) worth of shares under capital management plans.

The on-market share buyback initiative will involve the repurchase of up to 25 million ordinary shares, representing no more than 2% of Mighty River’s stock. The transaction is expected to be carried out between October 15, 2013 and October 14, 2014.

In an initial public offering (IPO) in May, New Zealand sold a 49% interest in Mighty River, raising NZD 1.7 billion. The company, which produces electricity from hydropower and geothermal sources, will continue to track capital management. It plans to allocate an interim dividend of NZD 72.8 million, or NZD 0.052 per share, in March 2014.

In August, Mighty River posted a net profit of NZD 115 million for its fiscal 2012/13 through June, marking an increase of NZD 47 million. Its total power output in the period fell by 9% to 6,462 GWh.

(NZD 1.0 = USD 0.829/EUR 0.613)

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