ACC takes advantage of low NZX price to lift stake

ACC takes advantage of low NZX price to lift stake to 6.8%

Sept. 1 (BusinessDesk) – The Accident Compensation Corp. has taken advantage of a 7-year-low price for shares in NZX Ltd. to lift its holding in the securities market operator.

The state-owned accident insurance body lifted its holding in NZX to 6.8% from 5.4%, buying 750,000 shares on market at an average $1.41 apiece, according to a substantial security holder notice. The shares fell 0.7% to $1.39 today and are down 40% this year. A spokesman for ACC declined to comment on the transaction.

NZX is preparing to widen its offering of tradable products via its New Zealand Clearing Co. subsidiary, with the first derivative to be a whole milk powder futures contract. Last month, NZX said revenue may rise 10% in the second half, helped by listing fee growth and improving market conditions that it sees continuing into 2011.

Chief executive Mark Weldon said with a rebound in markets “the operating leverage achievable from NZX’s platforms will see profit grow significantly faster than revenues.”

(BusinessDesk)

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