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.