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Genesis Energy share offer details released

Hon Bill English
Minister of Finance

Hon Tony Ryall
Minister for State Owned Enterprises

13 March 2014

Genesis Energy share offer details released

The Government today released further details of the partial float of Genesis Energy, including a 1:15 loyalty bonus share incentive for New Zealand retail investors.

The Genesis share offer will open on Saturday, 29 March, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

The sale of Genesis shares, with the company expected to list on the NZX main board on 17 April, will bring to a close the Government’s successful share offer programme, Mr English says.

It follows the float of 49 per cent of Mighty River Power and Meridian Energy, and the sell down of 20 per cent of the Crown’s holding in Air New Zealand to 53 per cent.

“The Government has said it will sell between 30 and 49 per cent of Genesis Energy and the exact amount to be sold via the bookbuild will be announced on 26 March, before the bookbuild opens,” Mr English says.

“Proceeds from the sale will go in to the Future Investment Fund, which has so far raised about $4 billion for investment in assets like schools and hospitals, without the need for borrowing from overseas lenders,” he says.

“At the same time, New Zealand’s capital markets have been strengthened and New Zealanders who invested in the stockmarket for the first time through the Government’s share offers are now earning dividends from shares.”

The Genesis Energy prospectus was registered today, and is available together with the investment statement at: www.genesisenergyshares.govt.nz.

Other details announced by the ministers today are:
• The indicative share offer price range has been set at $1.35 to $1.65 per share.
• As with the other share offers, the minimum application will be $1000.
• Based on the indicative share offer price range, the prospective 2015 financial year implied gross dividend yield is forecast to range from 13.5 per cent to 16.5 per cent.
• The amount of the company to be sold through the bookbuild will be announced on 26 March.
• The bookbuild will be held on Thursday 27 March and Friday 28 March to establish the final share price.
• That price, and the resulting forecast dividend yield, will be announced on the evening of 28 March.
• The next day, Saturday 29 March, the offer will open to the public.
• To encourage New Zealand participation, New Zealanders who buy shares and hold them for 12 months from allotment date (expected to be 16 April 2014) will be eligible for 1 loyalty bonus share for every 15 shares they hold, with a cap of 2000 bonus shares.
• The Government is committed to at least 85 per cent New Zealand ownership at the time of the float, as was achieved with the previous government share offers.

“Over the next two weeks, Treasury, its advisers and Genesis Energy management will market the share offer to New Zealand broking advisers, New Zealand institutions and offshore institutions,” Mr Ryall says.

“This process will allow the Crown to determine the expected demand from the various investor pools, at which point we will decide and announce the level of sell down for the bookbuild process.”

The offer structure allows every NZX participant share broker in New Zealand to be invited to take part in the bookbuild. ANZ and ASB are also retail syndicate members for the share offer.

“The new structure means New Zealand’s largest sharebrokers are free to prepare and release research and analysis on the Genesis Energy share offer, at their discretion,” Mr Ryall says.

“The NZX has already publicly announced that it intends to host independent research on its website,” he says.

Important notice
The offer of shares in Genesis Energy Limited (“Genesis Energy”) is made by the Crown on the terms and conditions set out in the investment statement and the prospectus dated 13 March 2014. The Offer is not yet open. When it opens, applications for shares must be made on the application form accompanying the investment statement. The Crown does not guarantee the shares in Genesis Energy. An application has been made to NZX Limited ("NZX") for permission to list Genesis Energy, and to quote Genesis Energy's shares, on the NZX Main Board, and all requirements of NZX relating thereto that can be complied with on or before of this advertisement have been duly complied with. However, NZX accepts no responsibility for any statement in this advertisement. The NZX Main Board is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988.


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