Snail mail and the sheer volume of $627 million in deferral payments due today for the Meridian Energy $1.88 billion float in 2013 could make some investors forfeit their shares, but they are unlikely to be out of pocket.
Aside from the volume of investors owing 50c on each of 1.26 billion shares - 49% of Meridian - the slower mail service is being blamed for affecting the delivery of initial reminder notices, and in turn, the timely forwarding of cheque payments to Auckland by today's 5pm deadline.
All investors had the option to pay by banking direct debit and via a secure webpage.
There is market expectation Meridian will make an announcement next week on the number of investors who did not pay their second, 50c, instalment.
The Otago Daily Times and sharebrokers have fielded numerous calls about the looming deadline during the past fortnight.
The Government attracted about 62,000 New Zealanders to the 49% sell-down of Meridian, the $1.50 a share being at the bottom of the indicative range of $1.50 to $1.80; the deferral payments being a sweetener, as the investor got full dividend payments in the interim.
Craigs Investment Partners broker Peter McIntyre said because of the slower mail service delivery, there was a ''condensed timeframe'' for payments to made by deadline, noting the sheer number of repayments to be processed would in itself pose problems.
''There has been some confusion. I won't be surprised if some have forgotten or missed out,'' he said.
Meridian shares were trading at $2.38 yesterday.
However, he said, by way of example, that if Meridian's share price had been $2.40, and an investor had 1000 shares, while they would be forfeited if they didn't make the instalment payment, and were then sold by the trustee for about $2.40, there was a 90c premium on the original $1.50 float price.
The the investor would get back $900; but trustee costs would first be taken out of the $900.
''There's still the [trustee's] costs to consider, but at that level of premium [90c] it's unlikely anyone will be out of pocket,'' he said.
The Treasury website on the float notes it was responsibility of the majority of investors to make arrangements for payment, not sharebrokers. Craigs ''chased up'' some investors to remind them, Mr McIntyre said.
