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Treasury appoints Deutsche Bank and Craigs to advise govt on SOE selldown

The Treasury has appointed Deutsche Bank and Craigs Investment Partners as the Crown’s sole financial advisor for preparatory work it is doing to extend the mixed ownership model to four State Owned Enterprises.

Treasury’s general manager John Crawford said the firms were "selected after a rigorous assessment process from a strong line up of credible candidates.”

The government is planning to selldown its stakes in Mighty River Power, Meridian Energy, Genesis Energy, and Solid Energy and to reduce its shareholding in Air New Zealand. The government will retain a majority stake in all the companies. 

Deutsche Bank and Craigs Investment Partners will provide advisory and project management services, starting immediately. This contract period ends prior to the November general election. 

In the next few days, Treasury expects to issue a Request for Proposal (RFP) for scoping studies. 
 

Comments and questions
11

National's biggest broken promise from the last election.

The govt should have learnt a lesson from the telecom sale
Sold for $2b
$12b taken out in dividends and capital repayments
still worth a few $b
Never sell monopolies/oligopolies/duopolies

When the money from the partial sale is reinvested into our second biggest asset - Christchurch (20% of GDP), some would call it expanding the portfolio . Hopefully most of the 49% should be snapped up by super fund, iwi etc . Plus power companies should not be ran by the public sector and its respective bureaucracy .

"hopefully" is wishful thinking. Ministers have admitted that most of the offering will be taken up by offshore investors.

Telecom was sold for $4.25 billion, which was considered worldwide to be a fantastic price at the time.

Goldman and FirstNZ must be furious....hahahahaha

Surely not the same John Crawford that used to work for Deutsche a few years back...? Hmm...

One hopes that they would separate retail and generation, and give us a real electricity market before selling off these assets.

Does "selected after a rigorous assessment process from a strong line up of credible candidates.” mean it went to tender?

The Treasury has appointed Deutsche Bank and Craigs Investment Partners as the Crown’s sole financial advisor for preparatory work it is doing to extend the mixed ownership model to four State Owned Enterprises."

errr...... a little 'precipitious' isn't this?

I thought that John Key had stated there would be an ELECTION first in order to get a public mandate for this 'mixed ownership' ie: PRIVATISATION model?

It couldn't be that John Key is 'shonky' and his word isn't worth the proverbial....?

Penny Bright
http://waterpressure.wordpress.com

The election is a foregone conclusion, Penny, with the only thing yet to be determined being the majority by which National will win.

Not surprising therefore to see some of the biggest, most controversial and contentious ideologies being pursued. Especially in light of an opposition having no teeth, perhaps other than Hone & Don, but theirs are dentures only for show rather than effective bite.

Interesting to see how this will improve the economy which most of us have been waiting to see for 3 years!