Infratil backs Contact's proposed Manawa acquisition

Infratil has announced its support for Contact Energy's proposed acquisition of Manawa Energy.

Infratil, which owns a 51% stake in Manawa, said it will back the acquisition under a Scheme Implementation Agreement, subject to certain conditions.

The agreement entails Contact acquiring 100% of Manawa through a scheme of arrangement, pending approval from Manawa's shareholders.

As part of the deal, Manawa shareholders will receive $1.16 per share in cash and 0.5719 Contact shares for each Manawa share held.

Infratil's gross cash proceeds from the sale are estimated to be around $186 million, and the company will retain approximately 9.5% of Contact after the completion of the transaction.

The proposed merger aims to enhance the combined capabilities of Manawa and Contact by integrating their hydro assets and diversified energy portfolio.

The implementation of the scheme is expected to take 6-9 months.