Air New Zealand Board announces share buyback
Source: Air New Zealand
Air New Zealand Limited (“Air New Zealand”) announces that it intends to undertake an on-market share buyback programme on the NZSX and the ASX to acquire up to 3% of its ordinary shares (being 33,006,112 ordinary shares). The share buyback may commence from 4 October 2012 and may continue until 27 September 2013.
The Air New Zealand Board has decided to undertake the share buyback as it believes that the current share price does not fairly reflect the underlying value of Air New Zealand’s shares. The Crown, which holds 73.09 per cent of Air New Zealand’s ordinary shares, has advised Air New Zealand that it will not participate as a seller into the share buyback.
To ensure that Air New Zealand’s trading does not unduly influence the price of its shares, the following trading rules will apply in relation to the buyback:
- Air New Zealand will not purchase shares under the buyback at a price which is more than five per cent above the volume weighted average market price for Air New Zealand shares (calculated with reference to the volume weighted market price of Air New Zealand shares during the last five days on which sales in those shares were recorded prior to the day on which a purchase under the share buyback is made). This pricing restriction is required under the ASX Listing Rules;
- Air New Zealand will only purchase shares through the NZX and ASX order matching systems;
- Air New Zealand will not purchase more than 25% of the trading volume over any 5 trading day period;
- Air New Zealand will not take part in the opening transaction of any day and will not trade in the last 15 minutes of the trading day; and
- Air New Zealand will not purchase shares through more than one broker on any trading day.
The Air New Zealand Board may from time to time change any of the trading rules referred to above or add any additional trading rules. As required by the NZSX Listing Rules and the ASX Listing Rules, Air New Zealand will make daily announcements to NZX and ASX of any shares bought back under the share buyback.
It is currently intended that shares acquired under the share buyback will be held as treasury stock and may be used for the purposes of fulfilling Air New Zealand’s obligations under employee share-based compensation plans.