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View Full Version : Contact stake done deal??



Mr_p_yu
20-07-2004, 10:43 PM
From Reuters, looks like Origin has piped AGL to buy the CEN stake[?]. Guess we will find out how much the deal is tomorrow...Hang on to your seats ladies and gentlemen[^][^]....By the way, shouldn't CEN be on trading halt as well????

Here is the article from yahoo,

Reuters
UPDATE - Origin Energy to buy Edison's Contact stake-source
Tuesday July 20, 6:12 am ET


(Adds background from paragraph six)
SYDNEY, July 20 (Reuters) - Australia's Origin Energy Ltd. (Australia:ORG.AX - News) is set to announce the acquisition of a 51 percent stake in New Zealand's Contact Energy Ltd. (NZSE:CEN.NZ - News) from Edison Mission Energy (NYSE:EIX - News), a source said on Tuesday, a deal that could be worth US$1.1 billion.

Origin halted trading of its shares on Tuesday pending an announcement, which an investment banking source told Reuters would come on Wednesday.

"The announcement will likely be that Origin has bought the 51 percent stake in Contact," the source said.

In a statement to the Australian Stock Exchange, Origin (Australia:ORG.AX - News) said it requested the trading halt "pending the announcement of a significant investment".

The source refused to comment on the value of the deal, but based on Tuesday's closing share price of NZ$5.94, 51 percent of Contact would be valued at about NZ$1.7 billion ($1.1 billion).

Number one-ranked Australian energy retailer Australian Gas Light Co. (Australia:AGL.AX - News) had also been expected to bid for the Contact stake, which Edison is selling as it divests its offshore power assets to focus on its domestic U.S. operations.

Shares in Origin, Australia's second-biggest energy retailer, will remain suspended until the earlier of the start of trading on Thursday or whenever the announcement is made.

Origin shares closed down 0.2 percent at A$5.80 in a weaker overall market. ($1=NZ$1.52)


Anyone know any more about this?

Benlamnz
21-07-2004, 12:13 AM
The most obvious knock on effect:

NGC no longer for sale. But a merger with either PWC or Vertex still on the cards. CEN will come down to the bid price, and the spot light will firmly be on PWC for the last step of energy consolidation.

willy_wonker
21-07-2004, 09:43 AM
Willy did say long time ago to buy the electrical sector. :)[:p]

wsheridan
21-07-2004, 09:47 AM
quote:Originally posted by Benlamnz

The most obvious knock on effect:

But a merger with either PWC or Vertex still on the cards.


That would be an interesting power package :D

I presume you meant Vector

Benlamnz
21-07-2004, 09:50 AM
quote:I presume you meant Vector

yep! had too much to drink last night I guess.[:I]