Utilities firm Ascendant is to use cash raised from the sale of Bermuda Gas to buyback up to 1.5 million of its own shares.

The purchase would represent more than 14 per cent of the outstanding shares in the company.

Walter Higgins, the Ascendant president, said: “Due to a lack of liquidity in the local market, the market value of Ascendant shares has eroded over many years.

“The sale of Bermuda Gas is a major change to our business and the board of directors agreed that it is appropriate to return a portion of the value derived from the sale of Bermuda Gas back to our shareholders, while reserving a portion of the proceeds for future capital investment.”

The duration of the buy back scheme is expected to be a year and is scheduled to come into effect on Thursday.

Bermuda Gas was sold to Rubis Energy Bermuda in a $17.7 million deal announced last month.