Mighty River first SOE for mixed ownership - English
This morning the government confirmed that cabinet had agreed Mighty River would be the first SOE prepared for an initial public offering (IPO), most likely in the third quarter of 2012.
Mighty River Power will be the first state owned energy company that the public will be able to buy shares in.
This morning the government confirmed that cabinet had agreed Mighty River would be the first SOE prepared for an initial public offering (IPO), most likely in the third quarter of 2012.
Finance Minister Bill English said the government had earlier set a number of tests – including retaining majority government control and significant participation by New Zealand investors, who will be at the front of the queue for shares.
“The timing is likely to involve a number of IPOs spread over the next three years or so. Their timing will depend on market conditions and company circumstances.
“Ministers' initial decisions will allow treasury to proceed with preparing the mixed ownership programme. More detailed decisions about the precise structure and timing of the programme, including the Mighty River IPO, will be made in early 2012.”
Mr English said the mixed ownership programme involves less than 3% of taxpayers' total assets of $245 billion, which will grow by another $22 billion over the next four years.
“So this is about how we pay for increasing those assets – it's not about reducing them.”
Mixed ownership was an opportunity for New Zealanders to invest in something other than housing or finance companies, he said.
“It will free up taxpayers' money so the Future Investment Fund can invest in priority new assets like schools, hospitals and irrigation, without having to borrow from overseas lenders.”
The mixed ownership model is also being considered for three other energy companies – Genesis, Meridian and Solid Energy.
Legislation will be needed to remove any of the companies from the State Owned Enterprises Act.
Colin Williscroft
Thu, 15 Dec 2011
Thu, 15 Dec 2011
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Mighty River first SOE for mixed ownership - English
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