Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Market Surveillance Panel Findings Welcomed

27 May 2002


Contact Energy Welcomes Market Surveillance Panel Findings

Contact Energy Ltd today welcomed the finding by the New Zealand Stock Exchange’s Market Surveillance Panel that there was no breach of the Listing Rules in the course of its investment last October in the Valley Power project.

The Panel has informed the company that it had examined the transaction, which Contact undertook with its cornerstone shareholder, Edison Mission Energy, to build a power station designed to meet peak demand in Victoria, Australia.

The Panel concluded that it had “no reason to believe that Contact’s directors have acted contrary to shareholders’ interests in respect of this transaction”, and that its structure was permitted under the Listing Rules.

“Contact has contended from the outset that this transaction was below the threshold, set out in the Listing Rules, at which an Extraordinary General Meeting would have had to be called to gain minority shareholder approval,” Contact’s chairman, Mr Phil Pryke, said.

“We have offered, and the offer has been accepted, to seek a ruling from the Market Surveillance Panel as to whether an EGM will be required if and when Contact seeks to exercise its option to acquire a further 10% interest in the Valley Power project.

“However, Contact’s Independent Directors have decided, in the intervening period, that this option to increase its ownership stake will not be exercised,” said Mr Pryke.

“While we believe that acquiring the incremental 10% would produce net financial benefits to Contact and its shareholders, this had to be weighed against the likely costs and delays involved in seeking an EGM. It takes six to eight weeks to organise an EGM and mail the relevant documentation to every shareholder. This sort of delay is not compatible with the timetable required to exercise the option. Reluctantly, Contact’s Independent Directors concluded that the option would have to be waived.”

The construction phase of the Valley Power project is almost complete, with the station expected to be fully commissioned late this month, or in early June.

The Independent Directors remain satisfied that the projected returns from the existing 40 per cent stake in the peaking plant comfortably exceed Contact’s investment criteria, and that the acquisition is in shareholders’ best interests, Mr Pryke said.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news