Baycorp Could Return $120m on Sale of Debt Collection Arm

Big news coming from Baycorp Collection Services. According to a story running in the New Zealand Dominion Post, the company will announce on Monday how much money it will return to shareholders after the sale of its debt collection unit. While Baycorp is keeping the number under wraps, industry experts predict it could be as much as $120 million.

Speculation is being fueled by the fact that BCS sold Baycorp Collection Services to Allco Equity Partners for $117 million just last month.

Last year, BCS was able to return $146 million to shareholders; it has a policy of maintaining its dividend payout ratio at between 70 per cent and 90 per cent of available profits.

In a statement released by BCS on its website, Andrew Want, Baycorp?s chief executive, said, ?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 the ongoing programme of capital management which optimises shareholder returns and supports our strategic plans.”

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