Sale Of Contact Stake To Origin Energy Announced
Edison Mission Energy Announces Sale Of Contact Stake To Origin Energy
Edison Mission Energy (EME) announced earlier today that it had entered into an agreement to sell its 51.2 percent holding in Contact Energy Limited to Origin Energy Limited for NZ$5.67 per share, or total consideration of NZ$1,674.7 million, which includes the assumption of NZ$535 million of indebtedness in relation to the financing of EME’s shareholding in Contact.
In its announcement, EME stated that the finalisation of the Contact Energy transaction is subject to a limited number of conditions, including action by the New Zealand Takeovers Panel. EME stated that completion of the sale is expected to occur in the third or fourth quarter of 2004.
Contact anticipates that it will receive a notice of takeover offer from Origin, pursuant to the New Zealand Takeovers Code.
Contact will respond to the takeover offer in accordance with the Takeovers Code, and will be providing a Target Company Statement to all shareholders. Contact’s response will be overseen by the independent directors of the company, who are Mr Phil Pryke (Chair), Mr John Milne, Mr Tim Saunders and Dr Patrick Strange.
The company expects to shortly engage an Independent Adviser, as required under the Takeovers Code. Cameron and Company Ltd has also been retained to act as financial adviser to the independent directors.
Contact will make further announcements as