Mighty River shares set to be a sell-out
Tue, 10 Apr 2012 3:22p.m.
The sale of shares in state-owned electricity generator and retailer Mighty River Power is likely to attract more buyers than available stock when it's floated later this year, and the Government is eyeing up two more sales next year, according to Finance Minister Bill English.
During the consultation hui with Maori leaders, Mr English tried to allay fears the 10 percent cap on individual shareholdings and prospect of over-subscriptions may squeeze out iwi investors, saying the technical details of the float haven't been developed, but shares will be available on the open market in a report from a Christchurch hui on February 14.
"The first float is likely to be oversubscribed but kiwi investors will be at the front of the queue," Mr English said.
The notes report Mr English as saying the MRP sale flagged for the third quarter of this year will be followed by "two more next year".
Two other energy SOEs, Genesis and Meridian, are the next most likely candidates for partial privatisation, with Solid Energy and Air New Zealand potentially further off.
The Government is looking to raise as much as $7 billion by selling minority stakes in state-owned energy companies and the airline.
The hui notes were part of a dump of mixed ownership model documents from the Treasury, released just before the Easter weekend.
That includes Treasury advice on September 29 last year that Treaty of Waitangi obligations could threaten valuations of the floats by creating uncertainty for investors, and that retaining a provision preventing the companies from acting in a manner contrary to the Treaty was inconsistent to aligning the energy firms to other listed entities.
The Government ultimately drafted legislation to deal with this concern by transferring existing clauses in the State Owned Enterprises Act relating to Crown obligations to Maori under the Treaty, making it explicit that grievances wouldn't apply to private shareholders.
The documents also rule out special favours for Maori investors.
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10/04/2012 4:57:45 p.m.
What makes THE NAT PARTY think that they will see the end of the year in power???ACC SAGA,BANKS $15,000 SAGA,let alone other things that they are trying too fend themselves of.Going to be very interesting during the next few months.OH and I forgot,they have to get the sales passed into power yet.
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