Edison Contact Finance Limited Preference Shares
EDISON CONTACT FINANCE LIMITED PREFERENCE SHARES TO BE REDEEMED AND NEW OFFER TO BE MADE
Edison Mission Energy Taupo Limited has announced the redemption of $240 million of redeemable preference shares issued to Edison Contact Finance Limited. As a result, the Edison Contact Finance Limited redeemable preference shares issued to the public in 1999 will also be redeemed.
The redeemable preference shares will be redeemed on 2 July 2001. Some of the shares will be redeemed on their scheduled redemption date while others will be redeemed early.
The Edison Contact Finance redeemable preference shares were issued to the New Zealand public from July to November 1999. The proceeds were used to refinance in part Edison Mission Energy’s acquisition of 40 percent of Contact Energy. The share redemption is part of a refinancing by Edison Mission Energy of its holdings in Contact.
“This refinancing will result in a more efficient way to hold our investment in New Zealand,” according to Bob Driscoll, Edison Mission Energy’s Senior Vice President for Asia-Pacific.
A further aspect of the restructuring is that EME Pacific Holdings, the direct holding company for Edison Mission Energy’s investment in Contact Energy Limited, intends to make an offer of redeemable preference shares to the public of approximately $150 million as part of the reorganisation of its finances.
This offer would be made to both existing holders of Edison Contact Finance redeemable preference shares (who will be able to apply the proceeds from the redemption of their existing shares to the redeemable preference shares that EME Pacific intends to offer) and other members of the New Zealand public.
EME Pacific intends to register a prospectus and launch the offer shortly.
Bob Driscoll said EME valued its New Zealand investors and will keep them informed of developments in respect of the proposed new issue.