PM reiterates SOE 10% share cap plans
PM reiterates August government comments about a 10% cap on individual or company ownership of sell-down state owned asset shares. | Cites Telecom as an example but that ownership cap has been removed.
News that the government would legislate to cap the number of shares held in any state assets it sells should come as no surprise.
Responding to poor polling on the government's asset sales plans, Prime Minister John Key told National Radio that if re-elected, National would pass a law to restrict individual or company ownership in the state-owned assets it wants to sell shares in, to 10%.
"There's historical precedent there - Telecom had a cap - it's just a matter of passing legislation. We'd pass it," he said.
However, in a press release dated August 31 this year, Finance Minister Bill English left no doubt that was the government's position.
“It’s the government’s intention to impose a maximum shareholding cap on the mixed ownership companies,” Mr English said then. “That cap is most likely to be 10%.”
The assets the government has signaled it wants to sell shares in are energy companies Genesis, Meridian, Mighty River Power and Solid Energy. It has also said it wants to reduce the government's shareholding in Air New Zealand.
NZX also has a 10% ownership cap but the "Kiwishare" prohibition on any single shareholder owning more than 9.9% of Telecom, or any foreign ownership exceeding 49%, was removedin a last-minute change to the Telecommunications Amendment Act, passed on June 24.
Colin Williscroft
Wed, 23 Nov 2011
Wed, 23 Nov 2011
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PM reiterates SOE 10% share cap plans
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