Expert Comment

Subject: Meridian share float – essential for New Zealand if it is to capitalise on dynamism for growth

Simon Hunter, Partner, Grant Thornton New Zealand in Auckland, says that in a just released international survey, New Zealand is one of the most attractive countries in the world for supporting and enabling dynamic business growth but our infrastructure remains a constraint emphasising further the importance of a successful Meridian share float.

• New Zealand is identified as having the perfect springboard on which to grow.

• A lack of investment in infrastructure, research and development and technology is holding us back.

• We need the Government to be able to reap the returns from the sale of assets to invest in these areas to break our economic cycle.

• The Government is aware of this and also the relative failure in investors’ minds of the Mighty River Power (MRP) float.

• The share price will be at a substantial discount to ensure investors see past the MRP experience.

• Meridian has to succeed for the next Genesis float to succeed.

ENDS