Next power company IPO in October - Ryall
Air New Zealand sell-down also possible by year's end.
The second power company partial privatisation will likely take place in October, SOE Minister Tony Ryall says.
Details will be announced in Thursday’s Budget, Mr Ryall told TVNZ's Q+A programme.
“Well, that’s going to be announced in the Budget on Thursday. I can tell you one thing – it is an energy company, and I would expect that New Zealanders would have an opportunity to buy shares in that company – minority shares – around about October.”
Asked if the government could sell down its 80% stake in Air New Zealand by year's end, Mr Ryall said, “No, I can’t rule that out. Ministers are going to consider the Air New Zealand shareholding in the next few weeks, and then we’ll take advice and make a decision on that.”
But he concedes that circumstances would have to be right.
“Look, you’d have to look at some very favourable conditions for the Government to get a number of floats away after this one," Mr Ryall says.
"We haven’t yet made a decision on the Air NewZealand timing.”
Air New Zealand [NZX:AIR] shares closed at $1.50 Friday, near the top of their 52-week range (84c to $1.54).
On the face of it, the timing looks good. The carrier recently said it expects to double earnings for its financial year ending June 30. In February, it reported earnings of $100 million - its best interim result in five years.
The airline has a market cap of $1.64 billion.
Mr Ryall wouldn’t say if the government expected investor interest in the other assets to exceed that of Mighty River, but that the government’s objective remains to have more New Zealanders investing in these companies.
The government nominated four power companies for 49% privatisation: Mighty River Power (which listed Friday), Solid Energy (which has since faced a Parliamentary inquiry into its poor performance and debt run-up), Genesis Power and Meridian Energy.
Watch the full interview here.
NBR staff
Sun, 12 May 2013
Sun, 12 May 2013
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Next power company IPO in October - Ryall
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