Government launches new share offers websiteState Owned Enterprises
The Government has today launched a website to provide New Zealanders with information about the Government’s mixed ownership programme.
State Owned Enterprises Minister Tony Ryall says the new website, www.governmentshareoffers.govt.nz, will give New Zealanders factual information about the proposal to sell up to 49 per cent of four State Owned Enterprises - Mighty River Power, Genesis Energy, Meridian, Solid Energy, and a further stake in Air New Zealand.
“The website provides information about the share offer programme including what mixed ownership means, why the Government is undertaking the programme and how a public share offer works,” Mr Ryall says.
Mr Ryall says the website content reaffirms the Government’s core share offer commitments, including:
- The Government will retain at least 51 per cent ownership of each company;
- The Government expects 85-90 per cent New Zealand ownership. This means Kiwi investors will be at the front of the queue for shares; and
- No investor will be able to own more than 10% of each company.
“With New Zealand’s debt going from $50 billion today to $72 billion in three years’ time, New Zealand needs to control debt.
“We expect to receive $5 billion to $7 billion in proceeds, which will help control debt and allow us to build new schools and hospitals.
“The programme will also reinvigorate the capital markets and bring stronger commercial disciplines to each of the mixed ownership model companies.”
The Government remains on track to proceed with the first share offer, for Mighty River Power, in the third quarter of 2012, market conditions permitting.
Under securities law, there are restrictions on what owners can say publicly about the business and their shares in advance of an offer. An exemption from some of these restrictions has been granted by the Financial Markets Authority (FMA). Such exemptions are quite common, such as the recent exemption for Fonterra, and past exemptions for the float of Contact Energy and at Auckland International Airport.
Website address: www.governmentshareoffers.govt.nz
The Crown is considering offering shares to the public in one or more of Genesis Power Limited, Meridian Energy Limited, Mighty River Power Limited, Solid Energy New Zealand Limited and Air New Zealand Limited. No money is currently being sought and no applications for shares will be accepted or money received until after an investment statement containing information about the relevant offer of shares is available.