NZX's research pilot scheme will be in place for Meridian
Energy's listing. Photo supplied.
Independant research on state-owned power company
Meridian Energy will be made available following feedback
during the Mighty River Power offer which said more information
With most of New Zealand sharebroking houses involved in the
listing of the SOEs, many investors were left to their own
devices when it came to decisions about whether or not to
The NZX announced yesterday research would be provided by
Woodward Partners and Edison as part of NZX's ''research
pilot scheme'' which aimed to increase research coverage on
First NZ Capital and Morningstar would also make their
Both Dunedin broking firms - Forsyth Barr and Craigs
Investment Partners - are involved in the listing of Meridian
which the Government said on Monday was likely on October 29.
Neither can talk to the media about the float.
The Otago Daily Times has used Milford Asset Management and
Australian-based Morningstar to provide readers with research
Grant Thornton New Zealand partner Simon Hunter said
yesterday New Zealand was one of the most attractive
countries in the world for supporting and enabling dynamic
business growth but the infrastructure remained a constraint
emphasising further the importance of a successful Meridian
''A lack of investment in infrastructure, research and
development and technology is holding us back. We need the
Government to be able to reap the returns from the sale of
assets to invest in these areas to break our economic cycle.
''The Government is aware of this and also the relative
failure in investors' minds of the Mighty River Power
The share price for Meridian would have to be a substantial
discount to ensure investors saw past the Mighty River
experience, he said.
Meridian's offer document will be lodged on Friday. Finance
Minister Bill English has again promised New Zealanders will
have first preference to buy the shares.
The Government will retain a 51% share in Meridian, as it did
with Mighty River Power. Genesis Energy, the third energy
company to be sold down, is likely to be listed on the NZX in
the first quarter of next year.
The Government also intends selling down its stake in Air New
Zealand which will be much easier as the national carrier is
already a listed company.
Mr Hunter said Meridian had to succeed for the next Genesis
float to succeed.
Meridian will be sold in two tranches, with investors paying
60% of their purchases up front and the remaining 40% in 18
months' time. Green Party co-leader Russel Norman estimated
the cost of the ''interest-free'' loan to investors at $55
The costs of the Meridian sale, including the ''buy-now,
pay-later scheme'' would come on top of the $124 million the
Government had already spent on asset sales, he said.