Infrastructure investor Infratil says it plans to spend up to $65 million buying its own shares because it believes the share market is undervaluing them.
The shares closed yesterday at $2.44 and Infratil says they are worth $3.08 - $3.69.
The buyback will be conducted through a tender offer at a maximum price of $2.60 per share on 22 October.
Chief executive Marko Bogoievski says Infratil has a history of buying its own shares and the move is consistent with its behaviour over the last 18 years.
Infratil says it has a large number of investment opportunities and is promising increases in operating profit of at least 10% through to 2017.
The company is also promising 15% plus increases in its dividend payout over the next two to three years.
