Wellington, Sept 28 NZPA - Contact Energy says its investors have demonstrated their support for the company by opting to receive the equivalent of $69 million in shares rather than cash.

The company today said it had issued about 14.87 million new ordinary shares, under its profit distribution plan relating to the 2010 financial year final distribution of 14c per share.

Shareholders had the option to sell their shares back to Contact for about $5.71 per share, and the company said it had completed an off-market buy back of about 2.74 million shares.

That meant that in respect of the final distribution, 81.6 percent of shares were being retained, with 18.4 percent electing the buy-back option.

The result indicated strong investor support for the company's investment and growth strategy, Contact managing director David Baldwin said.

The power company had retained $239m since its profit distribution plan began in March last year, he said.

Contact would use the cash to invest in projects including a gas-fired peaker plant in Stratford, geothermal power stations in Te Mihi and Te Huka and two windfarm projects.