Contact Energy Ltd (NZX & ASX: CEN) has completed sale of Rockgas Ltd to Gas Services New Zealand, an associate of First Gas Ltd.
Rockgas holds what was previously referred to as Contact’s LPG business as well as 50% of the issued shares in Rockgas Timaru Ltd and an 8.5% investment in Liquigas Ltd.
Contact said net transaction proceeds will be applied to debt reduction.
It was earlier reported that Rockgas and Contact have entered into a marketing alliance to promote and cross-sell their respective LPG and electricity products.
Contact will provide support services, including call centre, billing and credit control services to Rockgas for mass market customers for an annual fee of $2 million.