Meridian receives 98 percent of instalment receipts

Meridian receives 98 percent of instalment receipts

By Suze Metherell

May 18 (BusinessDesk) - Meridian Energy, the state controlled energy generator and retailer, has received 98 percent of its instalment receipts with the first round of share transfers due this Thursday.

The partially privatised energy company listed on the NZX in October 2013, with the shares offered in a two-payment instalment receipts process to sweeten the offer for small investors, with $1 upfront and the promise of full entitlement to dividends, and the remaining 50 cents coming due this month. Investors who have had their payments cleared will get their fully paid shares transferred to them on Thursday, Meridian said in a release to the exchange.

The company will also make a further announcement regarding the share transfer and the next steps in the process on Thursday.

In February, Meridian said it planned to return $625 million over the next five years, subject to business remaining largely the same, including the Tiwai Point smelter owners not terminating their contract. The company reported a 21 percent increase in first-half earnings before interest, tax, depreciation, amortisation and fair value adjustments to $324.3 million, and flat profit of $117.1 million. Revenue rose 22 percent to $1.33 billion.

Shares of Meridian last traded at $2.38. The shares have gained 36 percent since the start of the year, and touched a high of $2.55 at the start of May.

(BusinessDesk)

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