Prime Minister John Key has today confirmed the sale date
for Mighty River Power shares.
The shares will be listed on the New Zealand sharemarket
shortly before Budget Day on May 16, Key says.
Cabinet met this afternoon to discuss the sale of up to 49
per cent of shares in the Waikato based power company which
marks the start of its flagship "mixed ownership model"
Key said Cabinet decided to go ahead with the "Order In
Council" which enacts legislation necessary for the sale.
Details of a loyalty bonus scheme would be announced before
the offer period starts - which is expected to be in mid
Key said his Government expected 85 to 90 per cent of Mighty
River shares would remain in New Zealand investors' hands.
"We're confident we can achieve that.''
The sales process will begin tomorrow with the opening of the
pre-registration which runs until March 22. See a Government
graphic outlining the sales process here.
SOE Minister Tony Ryall confirmed that as part of the offer,
Mighty River Power employees would be guranteed a minimum of
5000 shares each in the offer if they wanted them.
The Government has already said the minimum share parcel will
be $1000 and parcels of up to $2000 will not be scaled back.
It has pledged that between 85 per cent and 90 per cent will
be held by New Zealanders, including its own 51 per cent
Reports have resurfaced that Mighty River Power would join
other big New Zealand companies with a dual listing on the
Last July Key said work was being done on that as some
Australian fund managers who act on behalf of New Zealand
investors could trade shares only if a company is listed on
the Australian exchange.
- Adam Bennett of the New Zealand Herald