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

 

Edison Mission Energy To Seek 100% Of Contact

For immediate release
Friday 12 October, 2001


Edison Mission Energy To Seek 100 Percent Of Contact

Edison Mission Energy, the owner of 51% of Contact Energy Ltd, has today announced its intention to offer $3.85 a share for the remaining shares in the company, at a total cost of approximately $1.08 billion.

“We believe $3.85 is a full and fair price, providing shareholders with a very good return and making it attractive for them to sell,” Robert Driscoll, Edison Mission Energy’s Asia Pacific Senior Vice President, said in Wellington today.

“For people that invested in Contact at the float in 1999, the offer represents a total return of 35% on the listing price of $3.10, including dividends paid by Contact. It is 40 cents above Contact’s share price at yesterday’s close.

“Independent directors of Contact Energy will now consider our offer and appoint an independent adviser to report to them on it. It is our hope their evaluation of our offer will be able to be sent to shareholders with our formal offer by early November. Shareholders will only have to November 30 to consider our offer, along with the independent directors’ evaluation, and respond to it. Our aim is for the offer to be completed and for shareholders to be paid by mid-December.

“We make long-term commitments to the countries in which we operate,” Mr Driscoll said. “We thoroughly assessed the country’s political, economic and commercial characteristics.

“EME is confident that New Zealand’s political and economic climate, environmental policy and regulatory regime for the electricity industry are positive for long-term investment and we are confident Contact will continue to be a top-performing company.”

Mr Driscoll said that Contact’s customers would notice very little change, with Edison Mission Energy being committed to offering them the best possible pricing and service to ensure real competition in the electricity and gas markets.

END


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Transport Industry Association: Feb 2021 New Vehicle Registrations Strongest On Record

Motor Industry Association Chief Executive David Crawford says that the February 2021 figures are the strongest for the month of February ever. Registrations of 12,358 were 8.0% up on February 2020. Year to date the market is up 7.1% (1,735 units) compared to the first two months of 2020... More>>

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>

ALSO:



Hemp Industries Association: Could The Next Team NZ Boat Be Made Entirely Of Hemp?

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit..? More>>


ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>