Media release: 10 June 2005
Meridian Energy appoints advisor for Australian assets
Meridian Energy today announced today that it has appointed Credit Suisse First Boston and First NZ Capital to test the
market for a possible trade sale of Southern Hydro, its Australian subsidiary.
³Over the last few months I have had quite a number of approaches from a range of companies who have recognised the
increasing value of renewable energy assets, enquiring whether Meridian would be interested in a full or partial sale of
Southern Hydro,³ said Keith Turner, Chief Executive of Meridian Energy and Chairman of Southern Hydro.
³Our Australian investment has always been about creating extra value for our shareholder. We have a medium-term
strategy for growing that value organically, but given the level of informal interest shown already it is only prudent
to test the market now with a comprehensive and transparent process.²
Dr Turner stressed that there were a range of possible outcomes from the process, ranging from an outright sale through
partial sale to continuing ownership by Meridian Energy. ³We have a very clear view of the increasing value path for
Southern Hydro over the next few years as it enhances its existing assets and develops new energy projects. Our working
assumption is that Meridian will continue to own and develop Southern Hydro, and it will be up to other parties to
convince us otherwise with an offer that recognises our view of long-term business value.²
Nick Schiffer - Director, Investment Banking at CSFB - believes that there will be global interest in Southern Hydro.
³Southern Hydro is one of the largest pure-play renewable energy businesses in the world, and has a substantial growth
profile and a track record of successful project development. In the Australian market, Southern Hydro is uniquely
positioned to provide capacity insurance products because of its large peak generation capacity and quick start
capability.²
ENDS
About Meridian Energy Meridian Energy is New Zealand¹s largest state-owned enterprise, with assets of NZ$4.3 billion and
a BBB+ credit-rating from Standard & Poors. It is also New Zealand¹s largest generator of electricity, producing more than 13,000 GWh of electricity from
hydro-electric and wind power stations. www.meridianenergy.co.nz
About Southern Hydro Southern Hydro operates 737MW of renewable energy plant across New South Wales, Victoria and South
Australia including Australia's largest wind farm, the 91MW Wattle Point facility. Its 646 MW of hydro power resources
draw from nine separate catchment areas and provide fast start peaking power to the Australian national grid. It has a
range of wind and hydro projects under development. www.southernhydro.com.au
About Credit Suisse First Boston Credit Suisse First Boston or CSFB is the trade name for the investment banking
business of Credit Suisse and its subsidiaries and affiliates. CSFB is a leading global investment bank serving
institutional, corporate, government and individual clients. Its businesses include securities underwriting, sales and
trading, investment banking, private equity, financial advisory services, investment research, venture capital,
correspondent brokerage services and asset management. CSFB operates in 69 locations in 33 countries across five
continents. CSFB is a business unit of the Zurich-based Credit Suisse Group, a leading global financial services
company. http://www.csfb.com
About First NZ Capital First NZ Capital is New Zealand¹s only full service, wholly New Zealand owned, sharebroking and
investment banking firm. First NZ Capital has a strategic alliance with CSFB and works jointly with CSFB on cross-border
transactions involving New Zealand companies. www.firstnzcapital.co.nz
About the process Meridian will conduct a two-stage trade sale process to test the value of Southern Hydro. The two
stages will involve:
1. Distribution of an Information Memorandum to parties who have expressed interest and executed a confidentiality
agreement, and the invitation of indicative offers; and 2. Invited parties conducting full due diligence, leading to
binding final offers.
Meridian expects the process to be completed by October 2005.
ENDS