Minority Share Offers Bill passed – Next StepsState Owned Enterprises
A bill enabling the Government to offer New Zealanders minority shares in four energy SOEs has passed its third and final reading in Parliament today.
“This is part of the National Government’s wider economic plan to control debt and keep investing in our economy,” State Owned Enterprises Minister Tony Ryall says.
“Ministers will make a decision in due course whether to proceed with the sale aiming to commence the offer in the third quarter of 2012, market conditions allowing.
“Commercial work on the Initial Public Offer has been underway for some time including the process for selecting a retail syndicate – usually brokers and/or banks - which will be tasked with marketing and selling the offer to every day New Zealanders. The syndicate will support the Government’s goal to make it as easy as possible for New Zealanders to take part.
“We expect strong New Zealand interest. Current international economic uncertainty may see more interest in the government share offers as local investors stay home rather than invest overseas, and as they look to invest in known infrastructure businesses such as the electricity sector.
“The National Government has been upfront about its plans to offer New Zealanders minority shareholdings in government owned businesses, as part of a wider plan to protect and grow the New Zealand economy.
“We took that clear plan to the country and New Zealanders voted for us in overwhelming numbers.
“The share offers will help to control debt, increase opportunities for New Zealanders to save, and deepen capital markets.
“And, over the next 3 to 5 years the around $6 billion in proceeds from these share offers will pay for essential new public assets like modern schools and hospitals through a new Future Investments Fund – that is $6 billion we would otherwise have had to borrow from overseas lenders and pay significant interest on. That is $6 billion off our national debt.
“We have strict ownership limits and these are now enshrined in legislation. The government will retain at least 51 per cent control and there will be a 10 per cent share cap on all other investors. We have also set a target of 85-90 per cent New Zealand ownership at the time of the offer.
New Zealanders wanting more information can visit the website: 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.