14 September 2014
The listed generator retailers were the clear winners over the week on the back of little impact from the ‘Nicky Hager book’ hitting National’s polling statistics. For the week Meridian Energy (MELCA) was up 7%, Genesis Energy (GNE) rose 5%, Trustpower (TPW) gained 4%, Mighty River Power (MRP) was up 2% and Contact Energy (CEN) gained 1%. On Sunday Infratil (IFT) announced the sale of its Australian retailing assets Lumo Energy and Direct Connect Australia to Snowy Hydro Limited for an unconditional A$605 million. This is well ahead of analyst expectations; will lead to material valuation uplifts and provide the company with a significant cash injection allowing for capital management in coming months. The market is hoping for significant portion of this capital returned to shareholder by way of buybacks and reinvested into its existing assets.