Key rules out partial Kiwibank sale

John Key
John Key
Prime Minister John Key has ruled out the partial sale of Kiwibank.

The Government had already made a strong commitment not to sell it, despite Treasury announcing last week that Goodman Sachs had been hired to look at its books, Mr Key told TV One's Breakfast programme this morning.

"My understanding is that Kiwibank, which is rapidly emerging as the growth business of New Zealand Post - they want more capital from the Government, and Treasury have appointed Goldman to go and have a look at the whole business and see what the growth opportunities look like and make sure they're on the right track," he said.

He said announcements would be made later today on the date for the partial sale of Mighty River Power, the first company to be floated in the Government's partial asset sale programme.

The process was likely to move quickly now that a Supreme Court decision had cleared the way with its ruling on Maori water rights.

Cabinet would meet today to decide on the details held off on while the court case was on, including offering a loyalty bonus to New Zealanders who kept their shares for a certain period.

Mr Key would also confirm if the shares would be listed on the NZX and ASX

He said the aim was to have 85-90 per cent of shares owned by New Zealanders.

"It may be listed in Australia, but eight out of ten New Zealand companies are listed in Australia - the reason is some Australian institutions that buy shares on behalf of New Zealanders can't buy them if there's not an Australian listing; so the primary listing is in New Zealand, the turnover is in New Zealand.

"It's a technical rule they have".

Mr Key said there was a strong commitment to New Zealanders being at the front of the queue for shares.

- Kate Shuttleworth of APNZ

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