5 August 2015
Origin completes bookbuild for sale of 53.09% interest in Contact Energy
Origin Energy Limited (Origin) today announced the successful completion of the bookbuild process for the sale of Origin Group’s shareholding in Contact Energy Limited (Contact) at a price of NZ$4.65 per share.
The transaction was fully underwritten with the shares sold to a broad range of New Zealand, Australian and international equity market institutional investors, and New Zealand retail investors. Origin Group will receive net cash proceeds of NZ$200 million and approximately A$1.4 billion upon settlement on 10 August 2015, which will be used to redeem NZ$200 million of redeemable preference shares and repay debt.
"The decision to divest the Contact interest is consistent with Origin’s stated intention to continue to take action to reduce operating and capital costs, realign debt across group entities and, where appropriate, divest assets," Mr King said.
"I’d like to thank the Contact Board and management for their co-operation as part of Origin’s divestment of its interest in Contact."
Upon settlement of the transaction, Origin will deconsolidate Contact from its accounts. It is expected an impairment charge of approximately A$270 million will be included in Origin’s 2015 financial results. Impairment outcomes are subject to finalisation of the full-year accounts, which will be released on 20 August 2015.
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Price review outcome and update on FY2021 guidance
Origin Energy Limited (Origin) has provided the following update on earnings guidance for the year ended 30 June 2021 (FY2021), following an adverse outcome on a domestic gas contract price review, combined with a further deterioration in Energy Markets’ operating conditions.