Origin Energy Limited
(ASX:ORG) is set to sell its 53.09 per cent stake in New Zealand listed Contact Energy.
The company will raise around $NZ1.8 billion from the sale which it says will be used to repay debt.
Managing Director Grant King says the deal is in line with the company’s efforts to reduce operating and capital costs, realign debt and divest assets.
Origin expects its credit rating from Standard & Poor’s will remain unchanged at BBB- while its Moody’s rating will shift to stable.
The company says the transaction provides a genuine reduction in financial risk through the repayment of debt.
Origin Energy reported a net profit of $1 million in the first half of the 2015 financial year.
