Contact Energy plans USD-282m rights issue

(ADPnews) - Apr 28, 2011 - New Zealand power generation company Contact Energy Ltd (NZE:CEN) said today it would launch a one-for-nine rights offering to raise as much as NDZ 350 million (USD 282m/EUR 190m).

The proceeds will go to support growth opportunities including the company's 166-MW Te Mihi geothermal project, to be completed in the middle of 2013. The project will include two units of 83 MW each and will be built near the 52-year-old Wairakei geothermal power station northwest of the town of Taupo in New Zealand.

The company will offer the new shares to New Zealand and Australian shareholders at NZD 5.05 apiece, a discount of 15.4% to the stock's volume weighted average price for the past three months.

The company's majority shareholder, Australian oil and gas utility Origin Energy (ASX:ORG), has agreed to exercise its subscription rights in full.

Craigs Investment Partners, Deutsche Bank (ETR:DBK) and Goldman Sachs (NYSE:GS) have been appointed underwriters of the renounceable entitlement offer, which is to close on June 1.

Contact Energy is developing geothermal, gas, wind and hydropower projects. The company could add 350 MW of geothermal projects in the next few years.

(NZD 1 = USD 0.804/EUR 0.541)

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