Latest Mighty River Power Share Buyback Financial Roulette

New Zealand First leader Rt Hon Winston Peters says that the latest move by Mighty River Power is nothing short of playing financial roulette with the taxpayers interests.

This follows the announcement that the Mighty River Power Board will be buying back up to $50 million worth of its own shares.

“This commercial device smacks of deceit and desperation because Mighty River Power’s forecast show that it could sell the shares to pay for dividends quickly, if need be to shore up investor confidence if they suspect Mighty River Power will not perform that well.

“Effectively the taxpayer, in the form of 51% ownership of Mighty River Power, is buying back shares to artificially prop up the company’s value and it is probably prompted by their concerns about the effect of the Meridian share float.

“But it’s a very high risk move, especially if a drought hits this summer.

“To the average New Zealander, this is a commercial plan where one and one makes four”, says Mr Peters.

ENDS

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