Australia's Origin Energy has sold is Contact Energy shares to underwriters Macquarie Capital for $1.8 billion, ending months of speculation that it intended to exit.
Origin's shareholding in Contact is expected to be onsold to a broad range of Australian, New Zealand and international share market institutional investors and New Zealand retail investors.
The sale will be complete by tomorrow , Contact said.
Origin - which has in the past invested billions in Queensland liquid natural gas plants - said it would use the proceeds to reduce debt and to redeem $200 million in redeemable preference shares. The transaction has been underwritten at $4.65 a share by Macquarie, raising about $1.8 billion.
Origin said it would continue to hold upstream production and exploration interests in New Zealand.