15/09/2008 - 15:36

iiNet to launch share buy-back

15/09/2008 - 15:36

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Perth-based iiNet Ltd has announced it will buy back up to five per cent of its issued capital in a bid to strengthen its share price to better reflect the value of the company.

Perth-based iiNet Ltd has announced it will buy back up to five per cent of its issued capital in a bid to strengthen its share price to better reflect the value of the company.

The company will start the buy back scheme on September 29 with prices paid for shares no more than five per cent above the average price paid for iiNet shares over the previous five trading days.

The company plans to buy back up to 7.6 million shares under the capital management initiative

Euroz Securities has been appointed as broker.

Shares in iiNet closed up two cents to $1.41 today.

 

Below is the full announcement:

 

iiNet Limited (ASX: IIN - "iiNet" or the "Company") today announced an on-market share buy-back program of up to 5% of iiNet's issued capital.

Commenting on the announcement, Michael Malone, Managing Director of iiNet said, "iiNet's financial position and prospects have never been stronger. We have a very strong balance sheet and growing operating cash flows, which have been further enhanced by the Westnet acquisition.

"The Board has a strong focus on capital management and on growing shareholder value and considers that the current market price of iiNet shares does not fully reflect the underlying value, strong earnings and future potential of the Company.

"This is a sensible use of our spare cash right now, whilst we complete the integration of Westnet, and it reflects our Board's confidence in our ability to continue to grow the business.

"Our aspirations are high - we want to be the leading challenger in the Australian telecommunications market differentiating through outstanding service, cool products, exciting content and the iiNet brand, whilst leading industry consolidation."

iiNet's policy of declaring interim and final dividends will not be impacted by the buy-back program.

About the on-market buy-back program

The buy-back program will comply with section 257B of the Corporations Act permitting the purchase of issued capital within a 12 month period without any requirement for shareholder approval.

Under the Corporations Act the earliest that the Company will be permitted to buy-back any shares on market is 29 September 2008. The prices to be paid will comply with the requirements of the ASX Listing Rules, being no more than 5% above the average price paid for iiNet shares over the five previous trading days.

Any shares purchased under the on-market buyback program will be cancelled by the Company.

iiNet has appointed Euroz Securities Limited to act as its broker to the on-market buy-back program.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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