New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Manawa Energy (MNW) has received a takeover bid from Contact Energy (CEN) for the equivalent of NZ$5.95/share.</li><li>The offer price is a combination of CEN scrip and cash. With MNW directors unanimously supporting the deal, and key shareholders Infratil (IFT) and TECT Holdings (TECT) supporting the transaction, the only key risk to it not proceeding is Commerce Commission (ComCom) opposition.</li><li>Given the current political/regulatory climate, we cannot call what the ComCom will do. We increase our target price +$1.05cps (+20%) to NZ$6.20, reflecting a 50/50 weighted probability of the deal going ahead, and our positive view on CEN scrip which is ~80% of the NZ$5.95 offer price. </li></ul>

Manawa Energy (MNW) has received a takeover bid from Contact Energy (CEN) for the equivalent of NZ$5.95/share.The offer price is a combination of CEN scrip and cash. With MNW directors unanimously supporting the deal, and key shareholders Infratil (IFT) and TECT Holdings (TECT) supporting the transaction, the only key risk to it not proceeding is Commerce Commission (ComCom) opposition.Given the current political/regulatory climate, we cannot call what the ComCom will do. We increase our target price +$1.05cps (+20%) to NZ$6.20, reflecting a 50/50 weighted probability of the deal going ahead, and our positive view on CEN scrip which is ~80% of the NZ$5.95 offer price. 

Manawa Energy Ltd

Manawa Energy - Contact Swoops In