CANBERRA: Ratings agency Standard and Poor’s cut the company’s rating to BBB- in April, saying that Origin had not taken action to bolster its balance sheet.
Origin said it would retain upstream production and exploration interests in New Zealand.
Contact, whose shares were placed in a trading halt until the deal is completed, said it would increase its dividend payout and look to list on the Australian stock exchange.
It said it expected to report underlying earnings of about NZ$161 million for the year to June 30 at its annual result in two weeks.
Contact generates about a quarter of New Zealand’s electricity from gas, geothermal and hydro stations, and has around 560,000 retail customers, giving it 20 percent share of the market.
In May, the company scrapped plans to invest in overseas projects and instead paid a special dividend of NZ$367 million to shareholders.
