origin-abandons-its-takeover-of-contact

Origin abandons its takeover of Contact

Investor opposition forces the Australian energy company to pull out of its bid to merge with the New Zealand utility.
Australian gas and electricity supplier Origin Energy has abandoned its plan to merge with New ZealandÆs Contact Energy due to a lack of support from key institutional shareholders.

Origin already owns 51.4% of Contact and had proposed a A$7.2 billion market cap merger that would see the two companies become one while maintaining a dual listing on the ASX and NZX.

But New Zealand-based investors in Contact have voiced their dissatisfaction with the deal since it was announced in February, calling it a thinly-veiled takeover.

ôWe are disappointed that we have not gained sufficient support from Contact shareholders,ö says Kevin McCann, chairman of Origin Energy. ôThe board has reluctantly concluded that the management...
¬ Haymarket Media Limited. All rights reserved.

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