Rubicon buyback to start soon

By Phil Boeyen, ShareChat Business News Editor

Friday 13th July 2001

Rubicon has announced further details of its share buyback, saying it plans to begin the scheme at the end of the month.

The company says it will buy up to 95 million shares and the purchases will be made "on market" on the NZSE.

A disclosure document has been sent to all shareholders, explaining that the company can hold the offer open for up to 12 months from July 30.

Rubicon initially planned to spend $40 million on the buyback as a way of returning value to shareholders but increased that to $60 million following the announcement that Caltex would be buying its chain of Challenge petrol stations.

That sale, together with the disposal of the Brisbane fuels terminal, garnered Rubicon around $73 million in cash.

CEO Luke Moriarty has said the company is keenly aware that its share price is trading at a discount to net asset backing and it wants to bridge the gap.

Rubicon has also announced a small shareholdings programme, open until the end of November, allowing shareholders with less than 500 shares to sell them without incurring brokerage fees.

Rubicon began its corporate life with a base of shareholders from Fletcher Energy, who were given shares in the biotech company after Energy was sold to Shell.

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