Contact’s Manawa takeover—who wins?

We put some investor questions to Contact Energy Mike Fuge as the gentailer makes its case for a $2.3 billion takeover of renewable wholesale power company Manawa Energy.

Mike provides a picture of what a combined portfolio of energy assets would look after adding Manawa’s 25 hydro power stations, plus how this acts as a natural hedge.

But is Contact paying too much given recent challenges at Manawa (including a recent earnings downgrade) and what does it mean if Manawa majority shareholder Infratil sells and takes a 10.5 % stake in Contact?

When does the transaction pay its way? And what does the Commerce Commission need to weigh up to approve the deal that would make Contact the number 2 gentailer behind Meridian?

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