26 January 2011

Solid Energy welcomes the Prime Minister’s announcement today that the Government has asked Treasury to advise on the merits of selling up to 49% of the assets of four state-owned enterprises including Solid Energy.

Chairman, John Palmer, says, “We will work constructively to identify an optimal equity structure and the timing that would best benefit the company and the shareholder. We recognise that the shareholder wishes to reduce its borrowing while Solid Energy needs to raise significant capital to advance our business plans, including using Southland lignites to address key issues of national energy security and affordability.

“I believe that the intention of this announcement is entirely consistent with my public position and statements over the past year which recognises the opportunity for New Zealand that can be created by moving in this direction and the mixed ownership model that is under discussion.”

ENDS

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