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


MRP share offer document registered and loyalty bonus scheme

Hon Bill English
Minister of Finance
Hon Tony Ryall
Minister for State Owned Enterprises

5 April 2013
Media Statement
MRP share offer document registered and loyalty bonus scheme announced

New Zealand retail investors in the Mighty River Power share offer will receive one loyalty bonus share for every 25 shares they hold for two years from the offer, up to a maximum of 200 bonus shares, Finance Minister Bill English says.

Mr English also announced that the indicative price range for the shares is $2.35 - $2.80 per share, with the final price expected to be announced on 8 May after the retail offer has closed and the institutional offer has been conducted by a book-build process.

“The loyalty bonus scheme that I am announcing today is another way to encourage widespread and substantial New Zealand ownership of shares in MRP,” Mr English says.

“It also recognises the loyalty of those New Zealanders who retain their shares and contribute towards the country’s savings culture.”

The loyalty bonus scheme is available only to New Zealand retail investors – not to institutions in New Zealand or overseas.

The Mighty River Power share offer document was formally registered today and from later today will be available for viewing on the www.mightyrivershares.govt.nz website from within New Zealand.

A ‘consideration period’ has now started and is expected to last for five working days. This is a requirement under securities law to allow the Financial Markets Authority the opportunity to review the document before the offer period officially starts.

New Zealanders can also take this time to read the document and start considering whether they wish to apply for shares.

No applications are able to be accepted during the consideration period.

People who pre-registered will be posted or emailed copies of the share offer document once the offer opens, expected to be Monday 15 April.

Around 440,000 New Zealanders registered their interest in the share offer during the pre-registration period that ended two weeks ago.

Mr English repeated today that the Government expects to see at least 85 per cent New Zealand ownership of the company at the time it lists, which is expected to be on Friday 10 May.

The maximum cost of the loyalty scheme will not be known until the offer has closed and allocation decisions are made, but a bonus offer of 1:25 means that the maximum cost will be 4 per cent of the value of shares allocated to New Zealand retail investors.

“We think the size of the loyalty bonus strikes a good balance between promoting widespread participation in the share offer, rewarding New Zealanders who decide to hold on to their Mighty River Power shares, and being prudent with the costs of the share offer,” Mr English says.

State Owned Enterprises Minister Tony Ryall says the share offer period, during which New Zealanders can apply to buy shares, is expected to open on Monday 15 April. It will remain open for three weeks, with the expectation of it closing on Friday, 3 May, one week before the company is expected to be listed on the NZX Main Board and the ASX on 10 May.

“We know that many New Zealanders are likely to be buying shares for the first time and great care has been taken to ensure that the offer document sets out all the information they may need to decide whether or not they want to participate in the share offer,” Mr Ryall says. “The document is some 260 pages and sets out the relevant risks for people to consider.”

“After the consideration period, we will announce that the offer is open and New Zealanders will be invited to apply for shares. The offer period will be three weeks long, so there’s plenty of time for New Zealanders to read the document and consider whether they want to be involved.”

Potential investors are encouraged to talk to their financial advisors if they want personalised advice.

Mr English and Mr Ryall say the Government is pleased to have reached this stage in the offer process.

“It is worth noting the rationale behind our mixed ownership model. The share offer programme is expected to raise between $5 billion and $7 billion of capital that the Government can spend on new investments that we would otherwise have to do without, or we would have to borrow overseas to pay for them,” Mr English says.

“In addition, we think the companies themselves will benefit from the mixed ownership model.

“We look forward to the FMA completing its work and the offer period beginning.”




Important notice

The offer of shares in Mighty River Power Limited is made by the Crown on the terms and conditions set out in a combined investment statement and prospectus dated 5 April 2013 (the “Share Offer Document”). The Share Offer is not yet open. It is expected to open for Applications on 15 April 2013. When the Share Offer opens, Applications for shares must be made on the Application Form accompanying the Share Offer Document.

Application has been made to NZX Limited ("NZX") for permission to list Mighty River Power and to quote its shares on the NZX Main Board and all of the requirements of NZX relating to that application that can be complied with on or before the date that of this Media Release have been duly complied with. However, NZX accepts no responsibility for any statement on this Media Release. The NZX Main Board is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988.

The contents of this document are not permitted to be made available to persons in any country other than New Zealand. The Crown's shares in Mighty River Power Limited and the other Mixed Ownership Model Companies have not been and will not be registered under the U.S. Securities Act of 1933. The Crown's shares may not be offered or sold in the United States or to, or for the account or benefit of, any person in the United States absent registration or an applicable exemption from the registration requirements and may not be offered or sold in any jurisdiction where it is unlawful to do so.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



1080 Threat: Police Arrest 60 Year Old Auckland Man

New Zealand Police have arrested a 60-year-old Auckland businessman in relation to the criminal blackmail threat to poison infant formula with 1080, made public in March this year. More>>


Canterbury Transition Bill First Reading: Government Hiding From ECan Submissions

The Government has radically reduced the amount of time for public submissions on their controversial ECan bill, says Labour’s Environment spokesperson Megan Woods... “Their shortened timeline could mean that instead of the usual six weeks, Cantabrians get just one week to submit their views on the bill." More>>


Gordon Campbell: On Our Apparent Inability To Stand Up To Australia

Alas, and only days before the first meeting between our Prime Minister John Key and the new Australian leader Malcolm Turnbull, this country is showing no sign of standing up for itself. Quite the reverse. We seem to be rolling over, and making gestures of appeasement. More>>


Health Not-So-Many Benefits: Auditor-General On Scrapped Cost-Saving Plan

The Auditor-General decided to look into the costs and benefits of HBL’s work in the health sector and, where possible, identify lessons... We found that several factors contributed to the difficulties that befell HBL and, in particular, the Finance, Procurement and Supply Chain (FPSC) programme. More>>


Wikileaks: TPP Intellectual Property Rights Chapter Released

“If TPP is ratified, people in the Pacific-Rim countries would have to live by the rules in this leaked text,” said Peter Maybarduk, Public Citizen’s Global Access to Medicines Program Director. “The new monopoly rights for big pharmaceutical firms would compromise access to medicines in TPP countries. The TPP would cost lives.” More>>


Redundancies: 120 Laws To Be Repealed

The Statutes Repeal Bill will remove 120 pieces of superfluous legislation, and parts of eight other acts. It is being consulted on before it is introduced to Parliament. “The proposed Bill would reduce the total number of public Acts in force by more than 10%,” Mr Joyce says. More>>


Gordon Campbell: On John Key’s Trip To Iraq

In the embedded press coverage on this trip, the absence so far of any evaluation of the wider context of what New Zealand thinks it is doing at Camp Taji has been striking. More>>


Labour: Parata Puts Brakes On Charter School Appraisal

“When the Ministry of Education recommended they compare the achievements of children at charter schools to those of their counterparts at state schools, the documents show Hekia Parata specifically prohibited them from doing so." More>>


Bad Day For Universities: Gun, Bomb Threats On Three Campuses

Dunedin Police are continuing their investigation into the threat made against the University of Otago. Staff are following a number of lines of inquiry, and police are working to verify the authenticity and source of the post. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news