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Special iwi deal: $65m Might River shares set aside

The government has set aside up to $65 million of Mighty River Power shares for Maori tribes that participate in the IPO.

The pool represents about 1.8% of the shares on issue in the company and has been reserved for allocation to iwi that have unsettled historical claims against the government under the Treaty of Waitangi.

A dispute between the government and iwi over water rights was one of the reasons the Mighty River float, initially scheduled for last year, was delayed.

Mighty River’s prospectus, released this afternoon, says iwi that elect to participate will have to pay cash in full for the dollar amount of shares applied for.

Participating iwi will receive a guaranteed allocation of shares but they will not be eligible for loyalty bonus shares the government is offering as a carrot to other investors.

Shares in the company will be sold to iwi at the full price. Iwi who haven't established a ratified Post-Settlement Governance Entity (PSGE) will have their shares held by Public Trust.

If reserved shares in the iwi pool are not taken up by participating iwi they will be made available either under the general offer or the institutional offer, depending on what the government decides.

Iwi investments in Mighty River will be subject to an embargo preventing them from being sold until the later of: two years after the allotment, or; the date on which an agreement in principle has been reached on the iwi’s outstanding Treaty claim.

The Office of Treaty Settlements is in charge of taking applications for the offer, which must be received by May 3.

nkloeten@nbr.co.nz

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Comments and questions
7

I think we've all had it up to our ears with utterly manipulative iwi ripping off the rest of the country. They can have no possible claim under the now hugely reinvented treaty on this and other areas in which they've managed to con an only too obliging government.

The recent $200 million Key boasted about handing out to just one northern tribe alone - yes, $200 million, on Waitangi Day - while accumulatively thousands in total are now losing their jobs, and while funding is more than tight for the universities and health sector, among other, is quite simply a disgrace.

Bring back morality into politics... It long went.

Give your schtick a rest.

I agree funding in education and health is tight. My iwi is having to spend their settlement funds on scholarships and grants to assist our families obtain jobs and a good quality of life. Unfortunately, it means there's less available to invest and establish sustainable business ventures.

Take a number and get in line like everyone else, Maoris.

I did because that offer is much better. Oh, and there's no "s" in the maori language, the plural of maori is nga maori) that te reo lesson is free of charge :-)

Once again the gullible politicians are providing IWI with their usual offers of appeasement.When will it stop? Sure it may only be 1.8 per cent of the offer, but is it not somewhat ironical that on the one hand it was Maori who delayed the whole process, ans now they are being in appropriately been offered a certain allocation. going to be damm annoyed if the offer is over subscribed and we all face a reduction!

Space heads, did you not read the article you guys have just commented on? "Full price paid, No bonus shares, Must have a (tax liable) Post Governance Entity in place else the share will be held by Public Trust."
I don't see those conditions placed on the general public share offer. So why would iwi take up that offer? You're probably the same people who invested in South Canterbury Finance and received a $1.774 billion "handout" for putting your money in a high-risk investment. Which, consequently, is more than the total iwi settlements to date. Yes please, bring back morality in politics!