NZME says $30m share buyback to start April 4

Shares in NZME have gained 91.8 per cent over the last 12 months. Photo / NZME

Media company New Zealand Media and Entertainment (NZME) said it would start the on-market buyback of up to $30 million of its shares on April 4.

In releasing its annual result on February 23, NZME said it would start the buyback after receiving a decision from the Commerce Commission on a proposed industry collective bargaining agreement with Google and Facebook.

However, the company last week said that it had already signed a letter of intent with Google setting out the key terms for the proposed supply by NZME of news content for Google's News Showcase and for other news products and projects.

NZME, the publisher of the Herald, also said it was in commercial discussions with Meta - the company behind Facebook - with regards to Meta supporting a number of digital transformation projects over the next year.

In today's statement, NZME said the Commerce Commission had not released its decision.

"However, given NZME's progress with negotiating commercial deals with the global digital platforms and the update provided to the market on Friday, NZME is now in a position to be able to give notice of commencement (of the buyback)."

NZME said the buyback programme may run for up to 12 months from the date the disclosure document was sent to shareholders (December 16) and will be for up to 21.4 million shares - about 11 per cent of NZME's issued share capital - and an aggregate purchase price of up to $30m.

Shares in NZME last traded at $1.63, having gained 91.8 per cent over the past 12 months.