Baycorp to update investors next week

Andrew Want

Baycorp Advantage will update shareholders on its proposed capital return next week, the company says in response to market speculation.

The company has been analysing capital management initiatives because of the sale of Baycorp Advantage Collection Services (BCS) for A$97 million to private equity consortium Trans Tasman Collections. The sale is yet to be approved by Baycorp shareholders.

It was reported this week that up to A$100 million ($120 million) would be returned to shareholders in the second half of the year.

Baycorp managing director Andrew Want said yesterday "we expect a final decision to be made by the board imminently".

"We do not intend to respond to speculation as to the amount of any proposed initiatives, other than to say that we remain committed to an ongoing programme of capital management which optimises shareholder returns and supports our strategic plans."

He said a decision would be announced at the extraordinary general meeting on Monday to approve the sale of BCS.

Baycorp's share price closed up 7c yesterday at $3.97 a share.