Contact payout could reach $1.15b

Contact Energy's 95,000 shareholders could be in for a capital repayment of up to $1.15 billion, analysts say.

Its size will depend on the outcome of a strategic review by chief executive David Baldwin. This follows the abandonment of a merger with Origin Energy. First New Zealand Capital analyst Jason Lindsay estimates Contact could return up to $1.15 billion.

Contact has 576.7 million shares on issue, resulting in a capital return of $1.99 a share. Goldman Sachs JBWere analyst Peter Sigley suggested a capital return of about 50c a share, which would cost $288 million.