The Contact Energy Ltd (ASX: CEN) share price could attract attention today after the company announced a non-binding offer to acquire the remaining stake in King Country Energy for approximately $47 million. If successful, the move would see Contact take full ownership of all five King Country Energy hydropower stations.
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What did Contact Energy report?
- Contact has offered to buy the remaining 24.98% of King Country Energy from King Country Trust for around $47 million.
- The purchase, if finalised, would give Contact full ownership of five hydropower stations with 53MW installed capacity.
- The consideration is expected to be paid in scrip (new Contact shares issued to the Trust or its nominee).
- Consultation and review will occur before any deal is finalised, with completion targeted for Q2 CY26.
What else do investors need to know?
Contact already operates and maintains King Country Energy's five hydropower stations, supplying renewable power mainly in the King Country and Horowhenua regions. Full ownership would streamline operations and integrate King Country Energy's assets under the Contact umbrella.
Before the deal can proceed, King Country Trust will run a public consultation and special review, as required by their trust deed. This process is expected to last around a month, and any agreement remains subject to approval from both parties.
What's next for Contact Energy?
The next step is the Trust's public consultation, which will help inform its decision on the offer. If both parties agree, a sale and purchase agreement could be signed and completed in the second quarter of calendar year 2026.
If finalised, Contact Energy will issue new shares as payment, consolidating all King Country Energy operations and assets under its direct control. Investors should watch for further updates as the review and consultation progress.
Contact Energy share price snapshot
Over the past 12 months, Contact Energy shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
