Govt to sell Genesis stake in ‘next month or so’, Key says
Feb. 24 (BusinessDesk) - The government plans to sell down its holding in Genesis Energy “in the next month or so” with more details coming on Wednesday, Prime Minister John Key says.
Speaking at his weekly post-Cabinet press conference, Key confirmed the government’s intention to sell 49 percent of Genesis, saying the details will come in Finance Minister Bill English’s speech to the Auckland Chamber of Commerce on Wednesday. The Genesis part-sale is expected to raise between $700 million and $1 billion.
Last week Genesis reported a 23 percent slide in first-half earnings to $150.5 million, reflecting stiff retail competition and a warm winter, which meant hydro-storage was above average and wholesale prices were lower.
The partial privatisation programme has had mixed success after an opposition proposal to overhaul the electricity market saw traders discount the value of the power companies, accompanied by growing recognition that New Zealand has excess generation capacity that may last some years, keeping a lid on prices.