Edison Mission Energy to seek 100 per cent of Contact

11.05 am

Edison Mission Energy, the owner of 51 per cent 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," said Robert Driscoll, Edison Mission Energy's Asia Pacific Senior Vice President.

Contact is New Zealand's largest non-state power company, and the second-largest power generator in the country. It has 380,000 retail customers.

Making the announcement in Wellington a few minutes ago, Mr Driscoll said people who invested in Contact at the float in 1999, could realise a total return of 35 per cent 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," he said.

Shareholders will have until November 30 to consider the offer, along with the independent directors' evaluation, and respond to it. The company expects the offer to be completed and shareholders to be paid by mid-December.

"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," said Mr Driscoll.