Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Prime Minister - Mighty River shares readied for sale

Rt Hon John Key
Prime Minister

4 March 2013

Prime Minister - Mighty River shares readied for sale

Prime Minister John Key today confirmed the Government will offer the public up to 49 per cent of Mighty River Power in the second quarter of this year – subject to market conditions.

“This will begin tomorrow, with the opening of the process for investors to pre-register their interest in finding out more about the Mighty River Power share offer,” says Mr Key.

The Supreme Court last week dismissed challenges by the Māori Council and others to the Government’s sale of a minority shareholding in Mighty River Power. This follows the High Court reaching the same decision late last year.

“It means we can now proceed with offering a minority share in Mighty River Power.

“The Government’s share offer programme is an important policy. It is expected to free up $5-7 billion that we can then invest in other assets such as modern schools and hospitals, without having to borrow in volatile overseas markets,” says Mr Key.

“Under the share offer programme, New Zealanders will be at the front of the queue. They will have an opportunity to invest in big Kiwi companies at a time when they are telling us they want to diversify their savings away from property, bank deposits and finance companies.”

Cabinet today made a number of decisions about the timing and details of the Mighty River IPO.

These include:

• The Order-in-Council decision was taken to remove Mighty River Power from the SOE Act.
• A pre-registration process for New Zealand retail investors interested in finding out more about Mighty River Power shares will open tomorrow (5 March 2013) and run though until 22 March, around three weeks.

• The offer period is expected to open in mid-April and run for three weeks. The share offer document will be available at that time.
• Details of a loyalty bonus for New Zealand retail investors will be announced before the offer period starts.
• When the offer period closes, the institutional book-build takes place. Ministers then make share pricing and allocation decisions.
• We then expect that Mighty River Power will list on the sharemarket.

“My expectation is that, subject to market conditions, this process will be completed in mid-May, most likely before the Budget,” says Mr Key.

“The Mighty River Power share offer has been designed to achieve widespread New Zealand ownership. We envisage that, with the Government’s majority shareholding, total New Zealand ownership will be 85-90 per cent of the company after the share offer.

“From the Government’s perspective it makes sense to use this opportunity to reorganise the Government’s assets and redeploy capital to priority areas without having to borrow more.

“We intend to make it as easy as possible for New Zealanders to get access to information, register their interest and apply for Mighty River Power shares.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news