IAG is continuing its bid to boost the value of its shares with a $350 million off-market buy-back tender for about $350 million worth of shares. CFO George Venardos says it will consist of a capital component of $1.78 a share – except in “certain circumstances” when the price may be higher for tax purposes – with the balance being a fully franked dividend. “This may provide some shareholders with tax advantages relative to an on-market sale of shares,” he said.

IAG will use a tender process under which shareholders can offer to sell their shares within the tender range of $4-$5 a share or as a final price tender. The buy-back is expected to open on May 24 and run for four weeks.