Contact Energy has become aware that an unsolicited offer has been made by Carlyle Securities L.P to purchase up to one million Contact Energy shares. The offer is for NZ$7.60 per share, however payment of the shares is deferred and would not be received by the investor in full for as long as 10 years - with yearly payments being made in instalments of only 76 cents a year per share.

The offer by Carlyle Securities is not endorsed by Contact Energy. Contact's managing director, David Baldwin, said the offer is another opportunistic bid by Bernard Whimp (a General Partner of Carlyle Securities).

'Consistent with Securities Commission advice, the offer is worth significantly less than may appear at first sight and may even mean that the investor will never receive the full payment if the offeror is unable or unwilling to pay at any time in the future.'

Mr Baldwin strongly recommended that any Contact shareholder considering the offer should check it thoroughly before making a decision - especially the condition regarding when the purchase price is payable - and to seek advice from a reputable financial advisor if the terms were unclear.

Tags: Contact Energy