Close to half of the Meridian share offer has been claimed by
New Zealand retail investors ahead of the offer opening
Finance Minister Bill English and State-Owned Enterprises
Minister Tony Ryall said that showed the share offer was off
to a strong start.
New Zealand share brokers were invited to submit bids for
shares last week based on interest from their clients, as
part of a new process being run for the Meridian share offer.
"New Zealand share brokers have already committed to buy 565
million shares at a first instalment price of $1 each to
satisfy strong interest from their clients, Mr English said.
"This represents 45 per cent of the offer in total, and an
investment of up to $900 million when the second instalment
The Government was committed to achieving 85-90 per cent New
Zealand ownership of Meridian shares, he said.
"For the Mighty River Power share offer, a total of 55 per
cent of the offer was allocated to retail clients at the end
of the offer. The broker allocation for the Meridian offer
puts us well on the way to achieving a similar or better
As part of the Government's share offer programme, up to 49
per cent of the company would be sold, with the Government
retaining a majority 51 per cent share.
Mr Ryall said there were three ways to apply for shares;
apply online at www.meridianshares.govt.nz,
order an offer document by calling 0800 90 30 90 and
completing a paper application form, or apply through a New
Zealand share broker.
"We have always said that New Zealanders will be front of the
queue for shares in our share offer programme, so this means
there are eligibility requirements," Mr Ryall said.
Buyers would need to provide their IRD number, a New Zealand
bank account, a New Zealand address and a declaration they
were a New Zealand citizen or permanent resident.
The Meridian share offer instalment receipts
* investors will pay for shares in two instalments;
* the first instalment is fixed at $1 per share and payment
will need to be made at the same time as an application for
* the second instalment will be due in 18 months for all
investors who hold instalment receipts at that time;
* the second instalment is capped at 60 cents per share for
New Zealand retail applicants who continue to hold their
investment for the 18 month period; and
* during the 18-month instalment period investors will get
any dividends in full, despite not having fully paid for
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