Edison Makes Successful $1.208 Billion Bid For Contact Cornerstone Shareholding

Edison Mission Energy has successfully bid $1.208 billion for a 40 percent cornerstone shareholding in Contact Energy, Treasurer Bill Birch, SOE Minister Tony Ryall and Minister Responsible for Contact Lockwood Smith said today.

The bid, made through a competitive bidding process, was equivalent to $5 per share. It remained conditional on the completion of a public offering of 60 per cent of Contact, the Ministers said.

'The Government is extremely happy with the cornerstone sale process and with its outcome,' they said. 'Edison Mission Energy is an internationally-recognised US-based power company which specialises in the development, management, and operation of power production facilities.

'They already operate facilities in the United States, the United Kingdom, Spain, and Australia,' the Ministers said.

Edison Mission Energy is a wholly owned subsidiary of Edison International Inc., which has more than $47 billion in assets.

'Edison International also owns Southern California Edison, one of the largest electricity utilities in the United States.' They said Edison Mission Energy would hold its investment in Contact Energy through Edison Mission Energy Taupo Limited , a subsidiary of Edison Mission Energy.

'Under a standstill agreement, Edison Mission Energy will not be able to buy or sell shares in Contact for six months from the close of the sale. 'The sale of the remaining 60 percent of Contact Energy in a public float is planned for mid-April. Information relevant to the IPO will be contained in a registered prospectus for the offer of shares in Contact.

'More than a quarter of a million people have priority registered for a copy of the Investment Statement,' the Ministers said.