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

 


Meridian share offer likely by early November

Meridian share offer likely by early November

Prime Minister John Key today confirmed the Meridian Energy share offer would be concluded and the company listed on the New Zealand sharemarket by early November, subject to market conditions.

“The Meridian share offer – the second in the Government’s Share Offer programme – comes after we successfully floated 49 per cent of Mighty River Power in the first half of this year, hitting our target of an 85 to 90 per cent New Zealand shareholding, and retaining majority Government control,” Mr Key says.

“And the Government remains committed to 85 to 90 per cent New Zealand ownership on the Meridian share offer.”

He expects Mighty River Power, and now Meridian Energy, will benefit from a broader shareholder base, and end up being better, stronger companies for the rigour and transparency that being listed on the sharemarket brings.

“Both companies will also be better off because they will be able to access capital to grow in more ways than companies that are 100 per cent government owned – which is basically from the taxpayer.”

He says the share offer programme is aimed at freeing up between $5 billion and
$7 billion to invest in other public assets for New Zealand and New Zealanders.

“The partial sale of Mighty River Power put $1.7 billion into the Future Investment Fund – and that is money we have been using to buy public assets without having to borrow on overseas markets.”

Mr Key says it should be remembered the whole Government Share Offer programme covers less than 3 per cent of the Government’s total assets.

“It’s smart reinvestment. With so many demands on government funding, these companies can get investment from sources other than just hard-working taxpayers, and taxpayers can get money freed up for spending on other priority projects that they will benefit from.”

Mr Key says he is confident New Zealanders will understand the instalment receipts model being used for the Meridian share offer, which will involve them paying for their shares in two instalments.

“It is not an uncommon model with large share offers. I think New Zealanders will view the ability to pay around 60 per cent of the share price at the time of the IPO and receive full benefits for the first 18 months as a positive feature of this offer.”

He says listing up to 49 per cent of Meridian Energy will also give New Zealanders the chance to invest in another big Kiwi company at a time when many people recognise the value of diversifying their growing savings away from property and bank deposits.

As at June this year, New Zealanders held around $118 billion in bank deposits – around 20 times the expected size of the entire Government Share Offer programme.
ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Plain Packs Plan: Gordon Campbell On Tobacco Politicking (And The TPP Death Watch)

Has Act leader David Seymour got the easiest job in the world, or what? Roll out of bed, turn on the radio and hmm…there do seem to be a lot of problems out there in the world. Must think of something. And so it came to pass that this morning, David Seymour took up his sword and shield to fight for a world that’s about to be denied the rich and vibrant beauty of tobacco advertising. More>>

ALSO:

.


RECENT TPP MEETING:

Professor Ian Shirley: The Budget That Failed Auckland

The 2016 budget offered Auckland nothing in the way of vision or hope and it continued the National Government’s threats against the Auckland Council. Threatening the Council with over-riding its democratic processes if it fails to release land for housing is a bullying tactic aimed at diverting attention away from the fundamental problems with housing in the region. More>>

ALSO:

PM's Post Cab Presser: Budgets, Trusts And Pacific Diplomacy

Today Prime Minister John Key summarised last week’s budget and provided further detail about his upcoming trip to Fiji. He said that there has been “plenty going on” in the last couple of weeks and emphasised the need for Auckland council to facilitate more housing supply. More>>

ALSO:

Max Rashbrooke: A Failure Of Measurement: Inside The Budget Lock-Up

Shortly after the embargo lifted at 2pm news organisations started filing reports claiming that health, and to a lesser extent housing and education, were the ‘big winners’ out of the Budget. It failed to take into account the fact that in most cases the apparent increases were in fact cuts. Because of the twin effects of inflation and population. More>>

ALSO:

DOCtored Figures: Minister Clarifies DOC Budget

“Commentators have overlooked the fact $20.7m of that perceived shortfall is new funding for Battle for our Birds 2016, provided for in last week’s Budget...” DOC also has approval in principle to carry over a further $20m to 16/17 due to unexpected delays in a number of projects. More>>

ALSO:

For The Birds: Gordon Campbell On The Budget

Budgies, so their Wikipedia page says, are popular pets around the world due to their small size, low cost, and ability to mimic human speech. Which is a reasonably good description of Finance Minister Bill English eighth Budget. . More>>

Max Rashbrooke On The 2016 Budget

The best label for this year’s announcement by Bill English might be the ‘Bare Minimum Budget’. It does the bare minimum to defuse potential political damage in a range of areas – homelessness and health are prime among them – but almost nothing to address the country’s most deep-rooted, systemic social problems. Indeed the Budget hints that these problems may get worse. More>>

ALSO:

Gordon Campbell: On Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news