‘Undervalued’ New Hope to buy back $300m of its shares
New Hope will buy back up to $300 million of its own shares because it believes its record share price undervalues the company.
The coal producer said the current share price did not accurately reflect the underlying value and the on-market buy back was an opportunity to enhance value and improve liquidity.
Chairman Robert Millner said New Hope expected its strong cash generation as thermal coal demand outstrips supply.
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“We believe that the buy-back will benefit all our shareholders as it will reduce the number of shares on issue, thereby supporting the company’s return on equity, earnings per share and dividend per share for all shareholders who continue to hold shares in New Hope Corporation,” Millner said.
The buy-back will be done in the course of trading over the next 12 months.
