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

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news