Government files supplementary disclosure on Mighty River Power

The Government and Mighty River Power are filing a supplementary disclosure to the Mighty River Power offer document, say Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall.

The document is being lodged with the Registrar of Financial Service Providers this afternoon.

"The existing MRP offer document already outlined the principal risks associated with an investment in MRP shares," Mr English says.

That covered the risk that changes in the regulatory environment, including for the wholesale or retail electricity market, may affect the company.

However, we received advice that the recent Labour/Greens proposal, if they were elected, to effectively replace competition with a state agency to act as a single buyer of wholesale electricity from generators, could be material to decisions to invest in Mighty River Power shares.

Our advice is also that if Labour/ Greens had announced this policy before the offer began, their announcement would have been referred to in the offer document submitted to the FMA.

"The supplementary disclosure sets out the additional information so that prospective investors can factor that into their decision making," Mr English says.

Mr Ryall says the Government has always said that New Zealanders should consider the share offer opportunity carefully before making their own decisions. "That advice hasn't changed," Mr Ryall says.

As a consequence of the rules governing supplementary disclosure, the share offer website has been temporarily suspended until tomorrow morning when it will re-open with the new disclosure added, but with all other details of the offer remaining the same, including the closing time of 5pm on Friday 3 May.

The rules also require that New Zealanders who have already applied for shares may withdraw their applications if they choose. Withdrawals will be accepted for five working days.

"The MRP share offer is firmly on track. As we said at the time the offer was launched, MRP is a proud New Zealand company and the Government is confident in its future as a listed company," Mr Ryall says.

What happens next?

There are a number of procedural steps that need to be followed:

1. The supplementary disclosure document is being lodged with the Registrar of Financial Service Providers this afternoon, and is being published on the Companies Office website.
2. Mighty River Power is issuing a notice through the NZX to inform the market of the supplementary disclosure
3. The offer website (www.mightyrivershares.govt.nz) is temporarily suspended until just after midnight tonight. No applications for shares will be accepted until the website is turned back on.
4. From tomorrow (12.01am Tuesday 23 April) the website will carry the disclosure document and further information. Investors will be able to apply for shares again, and New Zealanders who had already applied are able to withdraw their application if they wish.
5. Withdrawals are accepted for five working days (until 1 May 2013).
6. Advertisements will be run in the major newspapers on Tuesday 23 April to inform New Zealanders of the supplementary disclosure.

What do investors need to do if they wish to withdraw their application?

Withdrawals can be made by calling 0800 90 30 90 (after 8am on Tuesday) or online via the www.mightyrivershares.govt.nz website after midnight tonight. As noted above, the website will be temporarily suspended for the rest of today.

An applicant who withdraws is permitted to re-apply. If they pre-registered, they will still benefit from the preferential allocation rights.

Refunds are required to be paid within ten business days of allotment (so they are expected to be paid between 14 and 28 May 2013).

Important notice:

The offer of shares in Mighty River Power Limited is made by the Crown on the terms and conditions set out in a combined investment statement and prospectus dated 5 April 2013, as amended on 22 April 2013. Applications for shares must be made on the Application Form accompanying the Share Offer Document.

The contents of this press release are not permitted to be made available to persons in any country other than New Zealand. Mighty River Power's shares 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.