Deutsche Bank, Craigs win mandate for advice on $7 bln of NZ state asset sales
July 8 (BusinessDesk) – The New Zealand government has hired Deutsche Bank and local affiliate Craigs Investment Partners as financial advisers on the sale of four state-owned companies that may reap as much as $7 billion.
The government detailed its intention to sell down its holdings in power companies Meridian Energy, Genesis Energy and Mighty River Power, coal miner Solid Energy and national carrier Air New Zealand in its May budget.
While it has begun preparatory work on the sales, the National-led government doesn’t intend putting the assets on the market until after the general election this year, giving it a stronger electoral mandate. It would sell as much as 49% of Meridian, Genesis, Mighty River and Solid Energy and reduce its holding in the airline, which currently sits at about 75%.
Deutsche and Craigs, which is 49% owned by Deutsche, will be the government’s sole financial adviser for preparatory work “to extend the mixed ownership model to four state-owned enterprises, the Treasury’s general manager John Crawford said in a statement.
Deutsche Bank and Craigs Investment Partners will provide advisory and project management services, starting immediately, he said. This contract period ends prior to the November general election.
The next step is to put out a tender for scoping studies on the sales, which will be released in the next few days on the government’s electronic tenders website, www.gets.govt.nz.