Takeovers panel approves exemptions in Origin's takeover bid

10.30am

The Takeovers Panel today conditionally approved several exemptions for Origin Energy's takeover bid for Contact Energy.

The principal exemption will enable Origin to acquire Edison Mission's controlling 51 per cent interest in Contact at an upstream, or holding company level, rather than at the direct Contact shareholder level.

Conditions of that exemption include: certification by an independent adviser approved by the panel; and certification of equivalence by the directors of Origin and of Mission Energy, which held the Edison stake.

These certifications are intended to ensure that the consideration ($5.67/share) being paid by Origin to Edison for its controlling interest is the same as that offered by Origin to Contact shareholders under the takeover offer required to be made by Origin.

Few shareholders are expected to take up the offer as its $5.67 price is well below the current price of $6.00.

Another exemption enables Origin to become the controller of all of the voting rights in Mission Contact Finance at the same time that it obtains Edison's stake.

Contact reports its third quarter result tomorrow.

- NZPA