INDEPENDENT NEWS

EME Intends To Acquire Further 8% Of Contact

Published: Fri 27 Apr 2001 03:55 PM
Edison Mission Energy Intends To Acquire A Further Eight Percent Of Contact
Edison Mission Energy (EME) has today informed the New Zealand Stock Exchange and Contact Energy that it intends to buy up to a further eight percent of the shares in Contact Energy by way of a “stand in the market”, at a price between $2.90 and $3.25 per share on an ex-dividend basis. This will increase Edison Mission Energy’s total holding to just over 50 percent of Contact Energy’s shares (excluding shares held by Contact as Treasury stock).
EME Senior Vice President, Bob Driscoll, said the move reflects the company’s ongoing confidence in the New Zealand economy and in Contact Energy.
“It is now two years, almost to the day, since we acquired the initial 40 percent,” he said. “We have been pleased with Contact’s performance in the New Zealand electricity market and with our investment in New Zealand.”
“Edison Mission Energy has recently announced that the existing preference shares issued to the public by Edison Contact Finance will be redeemed and that we intend to raise further funds from the public through a new issue of redeemable preference shares. This restructuring of capital provides us with the opportunity to increase our shareholding in Contact Energy,” Bob Driscoll said.
“In addition, the purchase of the additional shares will permit a more effective financing of our interest,” he said. “By acquiring a higher shareholding we can access additional finance.”
Edison Mission Energy will be in the market buying Contact Energy shares after the shares have gone ex-dividend and after the expiration of the notice and pause period required under the New Zealand Stock Exchange listing rules. At this stage it is anticipated that Edison Mission Energy will be able to commence buying Contact Energy shares on Monday 21 May, assuming the shares go ex-dividend on or before that date.
ENDS

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