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- Release Date: 05/12/12 10:54
- Summary: ASSET: CEN: CEN Sale of site of former New Plymouth power station
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CEN
05/12/2012 08:54
ASSET
REL: 0854 HRS Contact Energy Limited
ASSET: CEN: CEN Sale of site of former New Plymouth power station
5 December 2012
Contact announces sale of the site of the former New Plymouth power station
Contact Energy Limited (Contact) announced today the sale of the site of the
former New Plymouth power station under separate agreements to the Port of
Taranaki and Methanex New Zealand.
Port of Taranaki has agreed to buy the majority of the site which is adjacent
to their current operations for $15.5m. The agreement provides Contact with
rights to repurchase part of the site in the future if it wishes to develop
it for power generation and/or gas infrastructure purposes and it provides
that a third party may not use the site for those purposes.
In a separate arrangement, Methanex New Zealand has agreed to buy a smaller
portion of the site for $8.5m - this includes the area underneath the
methanol tanks that they currently own.
Contact will have no ongoing rights or obligations in respect of the
buildings and equipment on site at settlement.
The former New Plymouth power station was constructed and commissioned in the
1970s for then Electricity Corporation of New Zealand on land adjacent to New
Plymouth's port. The 600 MW gas and oil-fired power station was used
primarily to provide power when hydro lakes were low or electricity demand
was high.
In December 2007, Contact made the decision to permanently close the New
Plymouth Power Station after asbestos was discovered at the site. All
insulation materials containing asbestos were removed during 2008 and 2009
and since decommissioning Contact has primarily used the site for storage.
Dennis Barnes, Contact's Chief Executive said that "the announcement follows
a call in May for expressions of interest to purchase the site. We received a
number of bids, of which the two separate offers from Port of Taranaki and
Methanex New Zealand were the most compelling.
The two separate agreements represent a good commercial outcome for Contact
both in terms of price and the option to repurchase part of the site should
we need it, but also allows two important New Plymouth-based businesses the
space for growth and development".
Final dates for settlement and possession are yet to be confirmed.
ENDS
Investor enquiries: Fraser Gardiner 021 228 3688
Media enquiries: Nicholas Robinson 027 705 3831
End CA:00230689 For:CEN Type:ASSET Time:2012-12-05 08:54:20
