The share top-up plan - a first for New Zealand - will be open to the approximately 100,000 shareholders holding 5000 shares or fewer. It will mean they will be able to buy already issued shares from organising broker ABN AMRO Craigs without diluting the value of other shareholders' shares.

"Contact has the one of the largest bases of small shareholders in New Zealand and the company is committed to meeting the needs of these investors," said Contact chairman Phil Pryke.

"We also recognise that many of our shareholders are not habitual investors and find it difficult to cost-effectively increase their stakes.

"My fellow directors and I have had consistent feedback from small shareholders and their representatives that some shareholders would rather use their cash dividends to increase their stake in the company."

A traditional dividend reinvestment plan would see a company issue new shares in exchange for the dividend payment, thereby diluting the value of all currently issued shares.

Pryke said the plan would be administered by Contact's share registry, Computershare, and ABN AMRO Craigs - at no cost to participating shareholders and no commission paid to ABN AMRO Craigs.

Eligible shareholders will have the opportunity to purchase more shares with each six-monthly dividend payment until they hold more than 5000 shares or the plan is withdrawn. They have to register for the plan before November 20 to ensure their share of the 2003 final dividend will be reinvested in additional shares.

Meanwhile, TrustPower, the smallest of the big-five electricity generator-retailers, has joined the others in recording a healthy half-yearly profit.

It yesterday announced an unaudited after-tax surplus of $NZ36.9 million to September 30, compared to $NZ23.1 million for the same period last year. Earnings before interest, tax, depreciation and amortisation increased by 45% to $NZ79.6 million. While the amount of power the company delivered was down 15% on expectations, sales revenue was up 12%.

TrustPower is largely owned by three main shareholders - listed infrastructure investor Infratil (35.2%), Tauranga Energy Consumer Trust (28.6%) and US energy company Alliant (23.8%).

Last June, AGL, which also owns 66% of NGC Holdings, sold its 20.5% stake in TrustPower, in conjunction with a share buyback and cancellation, with the company returning $151.3 million to shareholders. The TrustPower board two weeks ago said it would return a further $NZ85 million through a share buyback scheme.