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.


Contacts

Media
Stephen Ellaway
Senior External Affairs Manager
Ph: +61 2 9375 5834
Mobile: +61 417 851 287
Investors
Chau Le
Group Manager, Investor Relations
Ph: +61 2 9375 5816
Mobile: +61 467 799 642

Not for distribution or release in the United States

This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The Contact shares have not been, nor will be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States.

Accordingly, the Contact shares may not be offered or sold in the United States, unless they have been registered under the Securities Act, or are offered and sold in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and applicable U.S. state securities laws.

Neither this announcement nor any other documents relating to the Sale may be sent or distributed to persons in the United States.