Meridian Energy to be readied for partial sale

The Government is taking the next step in its share offer programme and preparing Meridian Energy for partial sale later this year, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

This follows the successful listing last week of Mighty River Power on the New Zealand Stock Exchange.

“The Mighty River Power offer demonstrated that the Government’s share offer programme works,” Mr English says. “It raised $1.7 billion, which will be used to invest in hospitals, schools and other assets our communities want and need.

“At the same time, 113,000 New Zealanders took the opportunity to invest in a strong local enterprise. Mighty River Power now has the benefits of greater access to capital, better monitoring and oversight, and the market discipline that comes from being a listed company.

“Meridian will benefit from that same process, and New Zealanders will once again have the opportunity to invest in the Initial Public Offering of a large New Zealand company.”

Ministers have instructed Treasury to ready Meridian for a share offer of up to 49 per cent of the company, in the second half of this year, depending on market conditions, Mr Ryall says.

“A key first step in the offer process is for the half-year financial results of Meridian to be independently audited, and this will commence as soon as the results are confirmed after 30 June,” Mr Ryall says.

Meanwhile, Treasury will proceed with appointing key advisers, drawing from the panels established at the start of the Government’s share offer programme. Legal and capital markets advisers are due to be contracted by June.

Proceeds from the share offers go to the Future Investment Fund, which is expected to receive between $5 billion and $7 billion from the programme. The money is being used to pay for priority public assets, with $1 billion from the fund earmarked for each of health and education.

Disclaimer:

The contents of this announcement are not permitted to be made available to persons in any country other than New Zealand. The Crown’s shares in Mighty River Power Limited,  Genesis Power Limited, Meridian Energy Limited and Air New Zealand Limited have not been and will not be registered under the United States Securities Act of 1933, as amended (the "United States Securities Act") or the securities laws of any state of the United States and may not be offered or sold in the United States unless the shares are registered under the United States Securities Act, or an exemption from the registration requirements of the United States Securities Act and applicable United States state securities laws is available.