Mighty River Power directors have taken advantage of the slide in the state-controlled power company's price since its listing, buying up shares before trading restrictions for the board kick in at the end of the month.
Shares in MRP were unchanged at $2.44 today, still below their $2.50 listing price, having shed almost 11 per cent from the high it reached on its debut on May 10. The stock is rated an average 'buy' according to a Reuters survey, with a median price target of $2.82.
While some investors have been willing to sell below the listing price, three MRP directors, including chair Joan Withers and her deputy Trevor Janes, have been buying shares on market, according to disclosure notices lodged with the stock exchange.
The directors face a 'blackout' period on May 31, when restrictions are placed on their ability to trade until the company's earnings are announced. The next 'blackout' period kicks off on November 30 and lasts until the first-half results are announced.
Janes made the biggest acquisition on May 28, buying 41,600 shares at $2.363 apiece, or $98,300, according to a disclosure notice lodged with the NZX. His purchase came as director James Miller went on market to buy shares three times as the price fell, with 4,000 shares at $2.48 on May 24, 2,000 more at $2.45 on May 27 and a further 2,000 shares at $2.38 on May 28. Withers bought 12,500 shares at $2.57 apiece on May 16.
