Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Genesis Energy float timing soon, says Key

Genesis Energy float timing soon, says Key

Feb. 3 (BusinessDesk) – The government has received advice saying the partial privatisation of Genesis Energy is achievable in current market conditions and a decision on timing is expected “soon,” Prime Minister John Key says.

The largest of the ‘big four’ electricity company by customer numbers, but the smallest by asset value, Genesis is the last to be lined up for sale of up to 49 percent of its shares to private investors, with the government committed to between 80 and 85 percent of those shareholders being New Zealand private or institutional investors.

A Genesis float in the first half of this year was confirmed after Meridian Energy floated in late October, but speculation in the investment community suggests a float will occur sooner rather than later.

“Soon,” Key told journalists, when asked when a decision on float timing would be made. “Senior Ministers were talking about that last week.

“I’m very much of the view it’s going to take place. I saw some advice last night that indicated a sale is definitely a possibility and Treasury were confident we could do it.”

That was despite lacklustre share price performances by both MightyRiverPower, floated last May at $2.50, but was trading late today at $1.965. Meridian instalment receipts listed at $1 in late October and were trading late today at $1.01.

However, Key said the power companies were “reasonably high dividend stocks assuming they stick to their dividend programme.”

“At the end of the day, things are worth what the market will pay for them. I don’t think the dynamics are going to change around the electricity sector so they’re a known commodity. But in my view, the mixed ownership model (partial privatisation) programme has been the right thing to.”

It had helped keep government debt down while allowing investment in other new assets and would improve the management of the power companies.

Key also doubted it was a major election year issue.

“It was the big issue of 2011. It’s not really the big issue of 2014,” he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news