Contact Energy to raise US$278m for new geothermal capacity

Geothermal wellheads at Te Mihi NZ (source: Commons/ Wikimedia, Rjglewis)
Alexander Richter 28 Apr 2011

New Zealand based utility Contact Energy is to raise US$278 million to fund investment into new generation capacity, in particular for the Te Mihi geothermal power plant near Taupo, which is expected to be completed by mid-2013.

Reported by Radio New Zealand, “Contact Energy is hoping to raise NZ$350 million (US$ 278m) to fund investment in new generation.

New Zealand’s largest listed energy company will issue 69,503,327 new shares in the one-for-nine rights offer, which has been fully underwritten.
Shares will be offered at $5.5 cents, a discount of nearly 14% on Wednesday’s closing price of $5.86.

Origin Energy, which owns 52% of Contact’s shares, will take up the offer.

Contact’s chief executive, Dennis Barnes, says the funds will be invested in new generating capacity, in particular the Te Mihi geothermal plant near Taupo, which is due to be completed by mid- 2013.

The offer is underwritten by Deutsche Bank, Craigs Investment Partners and Goldman Sachs.”

Source: Radio New Zealand