Contact Energy Shareholders To Receive $4.25
Contact Energy Shareholders To Receive $4.25 Per Share
Edison Mission Energy (EME) announced today that Contact shareholders will receive $4.25 per share as its final offer price. This offer price will be reduced by the 11c interim dividend which Contact Energy announced today.
“We have increased our offer price after discussions with the independent directors of Contact Energy,” EME Asia Pacific senior vice president Bob Driscoll said. “The independent directors are recommending Contact shareholders accept our offer and, as current Contact shareholders, will be accepting the offer themselves. Our offer is ‘fair and reasonable’ according to Grant Samuel, the independent advisers to Contact, falling close to the mid-point of their share valuation range.
“This $4.25 price exceeds the trading range of Contact shares, and is $1.15 a share more than people paid when they invested in the initial float in 1999. We have taken note of the popularity of Contact's shares since the announcement of our intended offer price as well as the views expressed in the independent advisor's valuation. With these in hand, we have determined a final offer price which we believe to be both fair to shareholders and in line with our investment criteria. We believe it to be a valuable offer which will be successful.”
The Contact target company statement and the Grant Samuel report are expected to be available later today, Mr Driscoll said. “When EME has received the final statement we will be posting it on our website.”
Mr Driscoll said the offer date had been set for November 6. All shareholders would receive the formal offer document, which was now being printed, by the end of next week along with the recommendation and report from Contact’s independent directors.