Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Dorchester Announces Share Buyback Programme

Media Announcement
28 July 2006

Dorchester Announces Share Buyback Programme

The board of directors of financial solutions group, Dorchester Pacific Limited have today announced a share buyback programme of up to 4% of the Group’s shares.

The buyback will be effected from 2 August 2006, through the purchase of shares on the New Zealand Exchange, at prevailing market prices. The shares acquired will be held as Treasury stock.

Chairman of Dorchester, Mr Barry Graham, said: “The directors consider that the market currently offers a strong buying opportunity as the company’s current share price is at a significant discount to the underlying value.

We have an opportunity to acquire shares at a significant discount to their underlying value. This is a highly attractive use of the company’s capital.

The directors are strongly supportive of the strategic direction and leadership of the Group under new CEO, Andrew Walker. We believe that the share buyback is in the best interests of shareholders, will be accretive to share holder value, and is an effective use of shareholder funds. We see this as a strong investment opportunity for Dorchester in the current market.”

Dorchester’s CEO, Mr Andrew Walker, said: “Dorchester continues to deliver strong performance and results, and is well positioned in today’s more challenging finance market. Our conservative lending philosophy has served us well, and has ensured we have an appropriate risk profile for prevailing market conditions.

"Due to the current adverse market perception associated with the demise of a few, less robust financial businesses, the true value of Dorchester does not seem to be reflected in its current share price, which is trading at a significant discount to our view of the value of the company. This programme is EPS accretive, low risk and represents a good return on funds invested.”

Shares are trading close to or below the Group’s net asset backing of $1.89 per share, as at 31 March 2006.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news