Strategic review for energy company with Infratil shareholding

04 Jul 2008 12:15NZPA

A sale of all or part of Brisbane-based Energy Developments, in which infrastructure investor Infratil has a 30 percent interest, is on the cards with a strategic review under way.

The review would seek to identify and assess expressions of interest from third parties, as well as reviewing other value enhancing business strategies, Energy Developments said.

There was no certainty disposal of all or any portion of the company would result.

The review followed feedback from Energy Developments' major shareholders, and had the support of Infratil, Energy Developments said.

A variety of options would be considered with the objective of maximizing value for all of Energy Development's shareholders.

Infratil chief executive Lloyd Morrison said that subject to Australian regulatory approval, Infratil had agreed not to dispose of its shares in Energy Developments until the earlier of August 18, or when Energy Developments announced the review outcome.

Energy Developments said it anticipated the review taking about three to six months, and would endeavour to provide the market with updates at relevant times.

Listed on the Australian sharemarket, Energy Developments generates electricity from plants fuelled by landfill gas, coal mine methane, LNG, CNG and pipeline natural gas in Australia, Britain, the United States and through joint ventures in France and Greece.

It has a market capitalisation of $A346 million ($NZ444.7 million), and apart from Infratil other major shareholders include Australia's wealthiest family the Packers who have 7.5 percent.

A halt in trading of Infratil shares on the NZX, put in place before the market opened today at the request of Infratil, was lifted after the Energy Developments announcement.

Infratil shares rose 3c to $1.80 after trading resumed, after touching a year low of $1.75 yesterday and having been as high at $3.12 last October.

 
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