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Contact considers offer to quit Queensland power station

Friday 23rd December 2011

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Contact Energy is being offered A$31 million to quit its quarter share in a peaking station in the remote Queensland settlement of Oakey, which it has owned since it opened in February 2000.

The power station’s majority owner, ERM Power, has made the offer to Contact in order to raise its stake in Oakey from 62.5 percent to 83.33 percent by purchasing and cancelling the shares representing the New Zealand company’s holding.

In the early 2000’s, Contact had some ambitions in Australia, but abandoned them once it became majority-controlled by ASX-listed Origin Energy.

Contact owns 25 percent of the 282 Megawatt Oakey power station, which its corporate website describes as a $140 million station, and is located 150km west of Brisbane in Queensland, Australia.

A further announcement is expected in mid-January. Contact shares rose a little under 1 percent this morning to $5.16.

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