The government is likely to limit any firm or individual to owning only 10% of state owned enterprises.
The government will probably limit any firm or individual to owning only 10% of state owned enterprises.
The government will probably limit
The government will probably limit any firm or individual to owning only 10% of state owned enterprises.
The government’s “mixed ownership model” - under which it will open up 49% of shares in four state owned enterprises to private investment, will include a cap on how much anyone else can own, Acting Finance Minister Tony Ryall, delivering a speech prepared for Finance Minister Bill English, told an Institute of Finance Professionals of New Zealand conference this morning.
“The Government has already made two important commitments: That it will retain a shareholding of at least 51% each company, and that New Zealanders will be at the front of the queue for shares,” Mr Ryall said.
“New Zealand investors…will have the first opportunity to buy shares. We will invite participation from all New Zealand investors. They will include retail investors, KiwiSaver funds, other managed funds, Crown financial institutions such as ACC and the NZ Super Fund, Iwi, community trusts and all others.
“In addition, we will ensure the widest possible spread of shareholders. To achieve that, it’s the Government’s intention to impose a maximum shareholding cap on the mixed ownership
companies. That cap is most likely to be 10%.”
The four companies to be opened to private investment are the government’s energy firms – Meridian, Genesis, Mighty River Power, and Solid Energy.
“The mixed ownership model is a win-win for New Zealanders,” Mr Ryall said.
“New Zealand savers get to invest in good Kiwi companies, and the Government frees up $5 to $7 billion – about 3% of its current assets – over three to five years to buy new assets like schools, hospitals and ultra-fast broadband, without having to borrow from overseas lenders and increase our debt.”
