Contact Energy sells shortfall from rights issue

Wednesday 8th June 2011 2 Comments

Contact Energy has sold the 3.8 million shares not taken up in its rights offer at an 80 cent a share premium to the offer price.

The shares were sold in a bookbuild process and trading in the company's shares was halted while it was carried out.

The shares were sold at $5.85 each, compared to the $5.05 the shares were offered at in the rights issue.

The sale of the shares not taken up takes the amount raised by the company to $351.2 million.

The money was raised to strengthen the company's balance sheet and to fund the first part of the 166 megawatt (MW) Te Mihi power station to be constructed by mid-2013.

NZPA

Comments from our readers

On 9 June 2011 at 10:58 am howie said:

The 80 cents per share should have gone to the those unfortuneate shareholders who for a variety of reason did not take up their entitlements to what was effectively a canibalistic funding operation. True some shareholders are just dum but thats a poor reason to steal from them. Another example of lousy goverance; when will integrity have any meaning. Howie.

On 9 June 2011 at 1:44 pm Daffy said:

Anyone who has read Contact's Offer Announcement made on 28 April 2011 will know that the 80 cents per Share will be paid to holders of unexercised rights!