Share Sweeteners Are an Admission of Failure

The Government’s use of instalment receipts for the share offer of Meridian Energy is yet another admission that the asset sales are a complete failure says New Zealand First.

Up to 49 per cent of Meridian Energy will be listed on the sharemarket by early November, the second state-owned asset to be sold by this Government.

New Zealand First leader Winston Peters says that the shares are not attractive enough on their own, hence the Government’s use of instalment receipts as a sweetener for potential investors.

“The first deliberate market distortion by the Government was the recent $30 million taxpayer subsidy paid for Tiwai Point.

“Mighty River Power shares opened at $2.50, are currently sitting well below that, so it’s no wonder that the Government is running scared that the same will happen to Meridian.

“That’s the only explanation as to why they are offering another sweetener of an instalment receipt for these shares – to suck more people in to buying what they already own!

“The Government used loyalty bonus shares for the sale of Mighty River Power. They are using power subsidies and instalment receipts for the sale of Meridian. What will they think of next?

ENDS

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