Asset sell-down on despite petition

Bill English.
Bill English.
The Government is pressing with the partial sell-down of the three state-owned assets, unswayed by a petition recently presented to Parliament calling for the sales to stop.

Finance Minister Bill English and State Owned Assets Minister Tony Ryall announced yesterday Meridian Energy was likely to list on October 29. Meridian's offer document would be lodged on Friday.

The Ministers confirmed they were considering options for Genesis Energy and Air New Zealand, two of the other companies in the Government's share offer programme.

Mr Ryall said it was anticipated the Genesis offer would occur in the first half of 2014, subject to market conditions.

The Air NZ share offer would be different from the others, as it was already a sharemarket-listed company.

''What that means is that New Zealanders can buy shares in the company now, if they wish.

''We are currently working through the best way the sell-down can occur and we remain keen to ensure New Zealanders have the opportunity to participate in it''

At this stage, no final decisions had been made, including on timing.

However, when it occurred, it was expected to be a shorter process that the one used for Meridian and Mighty River Power, Mr Ryall said.

Earlier this month, the Keep Our Assets coalition's petition reached the required numbers to trigger a referendum on asset sales. The referendum is estimated to cost $9 million to run.

More than 327,000 people signed the petition, which needed to be resubmitted after an investigation found some had signed more than once.

Mr English said yesterday the Government was clear about the opportunity for New Zealanders when it put its share offers programme to New Zealanders during the 2011 election campaign.

''The compelling reasons for proceeding with the share offers are as valid today.''

The share offer would enable New Zealanders to invest in big Kiwi companies at a time when they were telling the Government they wanted to diversify their growing savings away from property, bank deposits and finance companies.

Forty-nine percent of Meridian would be sold in two instalments and there would be a price cap, to provide more certainty for investors about how much the shares would cost, he said.

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