Contact Energy in trading halt; Origin exit plan imminent

Contact Energy shares have been placed in a trading halt on the NZX, pending an announcement about its majority shareholder Origin Energy's exit from the company.

Australian business media have speculated that Origin, which owns 53.1 percent of the Wellington based electricity generator/retailer and owner of gas distribution and LPG businesses, is seeking to sell down or exit its holding in Contact as it deals with balance sheet pressures created by a A$25 billion liquefied natural gas project in Queensland, which has suffered cost over-runs and a slump in the global price of gas.

Origin first invested in Contact in 2003, taking over the cornerstone shareholding originally purchased by California based Edison Mission Energy in the first state owned electricity company privatisation in 1999.

BusinessDesk.co.nz

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