Government looks at loyalty bonuses for asset share buyers
The government is looking at a Queensland scheme where buyers of shares in the state's railways were issued bonus shares if they did not sell their initial buy-up for a specified time.
The government is looking at a Queensland scheme where buyers of shares in the state’s railways got $A1000 bonus shares if they did not sell their initial buy-up for a specified time.
Speaking on TV3’s “The Nation" State-Owned Enterprises Minister Tony Ryall said the government was undertaking a market research exercise to see what participants in the sharemarket might want the forthcoming float of four state-owned energy companies to look like.
He said the study would help inform the government about exactly what structure would work best for these floats.
“Clearly, if we're to have as much everyday New Zealander participation, we've got to make it as attractive as we can.”
And Mr Ryall told the Saturday programme the government would look at the Queensland loyalty bonuses.
“Certainly, I think the experience in Queensland has that it has encouraged Queenslanders to hold on to their shares longer.”
(Although it did perhaps did not help the political popularity of state asset sales overall, which was seen as a contributing factor to Labor's recent loss).
“We'll be considering that over the next few months.
“But I wouldn’t want people to think that that is necessarily going to be a feature of the offer.
“We haven’t made any decisions on that yet.”
Earlier this week, Chorus shares fell 13% on a draft Commerce Commission wholesale price determination that was more aggressive than anticipated.
However, the spun-off Telecom regained some of lost ground by Friday.
Angry investor Aaron Bhatnagar told NBR ONLINE the government's move had wiped nearly $180 million from Chorus' market cap (to around $1.17 billion), and sent "a very ominous message to those who want to invest in New Zealand infrastructure".
NBR staff
Mon, 14 May 2012
Mon, 14 May 2012
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Government looks at loyalty bonuses for asset share buyers
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