CEN - Contact Energy Ltd

[utopian201]

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Website

http://www.contactenergy.co.nz

CEN Docs

CEN - June 2010 monthly operational data.pdf

Contact Energy Preliminary 2009 Half Year Results.docx

CEN FY 2009 profit expectation.pdf

Contact raises $550 million in bond issue.docx

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[Bongo666]

Originally posted by utopian201 » Thu May 29, 2008 1:45 pm

http://www.stuff.co.nz/4564795a13.html

Contact Energy requests trading halt
Reuters | Thursday, 29 May 2008

Contract Energy, the country's second-largest listed company, today requested a trading halt in its share trading, pending a material announcement to its parent company.

Its shares were briefly halted yesterday after its 51 per cent owner, Australian power producer and retailer Origin Energy Ltd, requested a halt to its share trading.

Brokers said they were surprised trading resumed yesterday. The halt will apply until tomorrow, by which time the announcement was expected.

Origin was poised to accept an improved bid from Britain's BG Group, worth over $A15 ($NZ18.59) a share, the Australian newspaper reported today.

BG was understood to not want the Origin's stake in Contact and a trade sale which may be part of the Origin deal would trigger a full takeover offer for Contact.

The Australian quoted industry sources as saying an announcement on the deal was expected today. At $A15, Origin would be valued at about $A13.2b, based on its shares on issue.

Origin boss Grant King won a higher price from BG after arguing that BG's original proposal of $A14.70 a share undervalued Origin's coal seam gas reserves.

The Australian had reported yesterday that BG had upped its bid to over $A15.

A report in the Australian Financial Review paper said today Origin was edging closer to accepting an improved offer from BG, "revolving around a price of between $A15 and $A16 a share." It did not cite any sources.

BG, one of the world's biggest shippers of liquefied natural gas, wants Origin's vast coal seam gas resources in Australia to feed its proposed LNG plant in the northern state of Queensland.

NZPA sources expect Contact's buyer to be China Light & Power.

Contact shares were up 1 cent at $9.11 today, valuing the company at $5.3b.

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They hit $10.15 when the BG-Origin purchase was first announced. Makes me wish I topped up some when they were around $6.90 several weeks ago.

Nice buying by you though. Seems the Brits don't want Contact though, if media speculation is to be believed.

[Dodgy Viper]

Is Contact Energy worth buying to speculate for a possible buyout of Origin Energy or just good buying on its own without that factored in?

[utopian201]

For me, normally I'd say Contact is pretty good, but given the current volatility, i would have thought completely staying out of the share market with 100% cash would not be considered too cautious. Just look at FBU, the number 2 stock - has lost about 45% since the start of the year. That said, i will want to be buying before it all recovers; you dont get quality companies like FBU at such low PE ratios often (although FBU may be different, as it is tied to the property/construction market, which is currently experiencing declining growth)

Although I'm not sure if CEN it is likely to drop to a low similar to a few months ago (around $6.91)

[Bongo666]

For me, normally I'd say Contact is pretty good, but given the current volatility, i would have thought completely staying out of the share market with 100% cash would not be considered too cautious. Just look at FBU, the number 2 stock - has lost about 45% since the start of the year. That said, i will want to be buying before it all recovers; you dont get quality companies like FBU at such low PE ratios often (although FBU may be different, as it is tied to the property/construction market, which is currently experiencing declining growth)

Although I'm not sure if CEN it is likely to drop to a low similar to a few months ago (around $6.91)

Contact has been one of the better performers over the last year of volatility. I think there will be a further correction in share price when their downgraded profit comes out

[Bongo666]

It is truly amazing how the head of Contact Energy can stay in his job after costing his company over half a billion and putting employees own jobs at risk, Contact debacles costing Heads of listed companies do seem to exist in some kind of parallel universe where up is down, black is white and incompetence is rewarded. David Baldwin should go...

[Bongo666]

Contact Energy needs desperately to build more economically sustainable electricity production, that is, hydro and not the other PC led options like wind power, which is expensive and unreliable as a source.

Without this extra generation the company faces loss of customers due to the higher prices they would have to charge without good capacity and increased input costs due to money spent on gas, and diesel to power the short-term alternatives.

Contact Energy is reviewing four options for hydro developments on Otago's Clutha River.

It has launched a website outlining the options and seeking public comment. By next year the company hoped to be in a position to announce a preferred option.

The four options were originally investigated by the Electricity Corporation of New Zealand and inherited by Contact when the company was formed in 1995.

Indications of the possible costs of the options range from $300 million to $1.5 billion. See attachment below for the full story

Contact looks to be a good buy at current share prices below 6 bucks

[Bongo666]

Looks to me like Origin are getting the ducks lined up for another play at contact energy. This from todays NZ Herald:

Contact Energy's Australian owner has Government consent for the largest foreign deal in New Zealand this year.

The Overseas Investment Office said Origin Energy's move to increase its stake in Contact involved assets worth $5.2 billion, putting the transaction ahead of all others in 2009.

Earlier this year, Contact said it wanted to pay out profits by issuing shares instead of dividends. So Origin has now applied to the Government for clearance because the change means it will increase its stake in Contact.

Origin cited large slices of land involved which are classified as sensitive under the Overseas Investment Act. These power generation plants and assets are at Otara, New Plymouth and in Central Otago.

I'm keeping CEN on my watchlist for a buy.

[Bongo666]

As I have said above, a bid looks on the cards for Contact by Origin, its majority owner. Any bid by then would have to be above 10 bucks to succeed, surely?

[Bongo666]

A market alert for Contact Energy, profit downgrade this morning (see attachment below) presents a good buy opportunity.

[Bongo666]

Share price not as badly affected by downgrade as I thought it would be. A couple of dire stories about (see attachment below) yesterdays profit downgrade could have a negative effect on the share price. Another good opportunity to get in there!

[Toddy]

I have my finger on the buy button.

[Bongo666]

Did ya end up buying Toddy?

[Bongo666]

Utopian, you said this back May 29 2008:

They hit $10.15 when the BG-Origin purchase was first announced. Makes me wish I topped up some when they were around $6.90 several weeks ago.

Have you been buying since then or not?

If not why not?

[Toddy]

Did ya end up buying Toddy?

Nope, I reckon it could get a bit lower. Still watching though