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

 


NZ government to sell full 49% of Genesis Energy

NZ government to sell full 49% of Genesis Energy, with instos, brokers offered 40%

March 26 (BusinessDesk) – The government will sell 49 percent of Genesis Energy in the last of its scheduled asset sales after feedback from institutions and brokers gave it confidence it didn’t need to reduce the size of the selldown.

Institutional investors and New Zealand brokerages will be offered 40 percent of the company, or 400 million shares, through a bookbuild that opens tomorrow, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall said in a statement.

So-called mum and dad investors will then be offered up to 90 million shares, or 9 percent of the company, through a general offer that opens on Saturday. That includes shares set aside for loyalty bonus share allocations.

The government had previously said it may sell anywhere between 30 percent and 49 percent of Genesis, depending on demand. The shares are being offered at an indicative range of $1.35 to $1.65 per share, with the final price determined by the bookbuild and announced on Friday, the ministers said.

“We have received positive feedback on the offer to date from local and international institutions and New Zealand share brokers,” English and Ryall said in their statement.

The offer includes one bonus share for every 15 owned, capped at 2,000 bonus shares, provided the investor holds the stock for 12 months. Based on the indicative price range, the implied gross dividend yield for the 2015 year is forecast to be in a range from 13.5 percent to 16.5 percent, the government said earlier this month. Analysts at Forsyth Barr dubbed it a “turbo charged dividend” in a note last week.

Genesis is the smallest electricity SOE by asset value but by far the country’s largest electricity and gas retailer with more than 650,000 customer connections. It owns a mixture of gas and coal-fired, wind and hydro plant.

As with the selldown of MightyRiverPower and Meridian Energy, the taxpayer remains the controlling shareholder, with at least 51 percent of the shares, and the government is committed to 85 percent New Zealand ownership at the time of the float, albeit foreign investors could then buy shares issued to New Zealanders. The sales will raise more than $4 billion.

The government is aiming for a listing date on the NZX of April 17.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news