Contact Energy aims to raise $350m in rights offer
Contact Energy is aiming to raise around $350 million in a rights offer.
Contact Energy is aiming to raise around $350 million in a rights offer.
The company today said it was launching a one for nine pro rata renounceable entitlement offer of new Contact Energy shares which would be open to existing New Zealand and Australian shareholders, at an offer price of NZ$5.05 per share.
That represented a 13.8 percent discount to the share price at market close yesterday and 15.4 percent discount to the three month volume weighted average price, Contact Energy said.
The $350m it planned to raise from the offer would enable Contact Energy to strengthen its balance sheet for investment in growth opportunities.
One of those is the 166 megawatt Te Mihi geothermal power station, near Taupo, to be built by mid-2013.
Contact Energy's major shareholder Origin Energy has confirmed it would take up its full entitlement.
The rest of the offer is being jointly underwritten by Craigs Investment Partners and Deutsche Bank AG, Auckland Branch, together as one underwriter, and Goldman Sachs&Partners New Zealand.
Shareholders who do not wish to participate in the offer can sell their rights, which will be tradeable on the NZX.
A simplified disclosure prospectus for the offer was registered today with the Companies Office and would be sent to eligible shareholders around May 12. The offer period is from May 13 to June 1.
NZPA
Thu, 28 Apr 2011
Thu, 28 Apr 2011
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Contact Energy aims to raise $350m in rights offer
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