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

 

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news