Origin (through Origin Energy Pacific Holdings Limited, Origin Energy Universal Holdings Limited and Origin Energy New Zealand Limited) controls, prior to the sale, approximately 53.09% of the ordinary shares in Contact.

CLSA said the sale price reduced 50¢ a share from its valuation of Origin but the discount was smaller than the 9.7 per cent Chevron took for its exit from Caltex Australia in March.

Following confirmation from Origin that the Sale has been completed, Contact will request NZX lift the trading halt. Contact has announced the trading halt would be effective from today.

Contact’s part in the deal involved signing a contract with Meridian Energy for 80MW of supply to Tiwai for at least four years from January 2017.

The special dividend was worth $367 million, with most going to Origin Energy which suffered a credit rating downgrade by Standard & Poor’s earlier this year.

Phil Pryke, will assume the role of interim Chair until such time as a new Chairman is appointed.

The company said it expected its underlying earnings after tax to be about $161 million and for its free cash flow to come in at $363 million.

Origin expects its credit rating from Standard & Poor’s will remain unchanged at BBB- while its Moody’s rating will shift to stable.

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. “The proceeds from the Sale will provide increased financial flexibility in the short to medium term”.

Origin finance & strategy executive director Karen Moses said the transaction provided a reduction in financial risk through the repayment of Origin’s debt as well as the deconsolidation of Contact’s debt.

Origin will continue to hold upstream production and exploration interests in New Zealand.

Edison had become a cornerstone shareholder when Contact was privatised in 1999.

“We thank Origin for their support over the last 11 years as we have reinforced Contact’s position as a leading New Zealand-based energy company”, the Contact board said in a statement.