Date: 7th June 2013
Earlier this year, shares in Mighty River Power were available for purchase and, as announced in the budget, Meridian Energy is next off the block. In the second half of this year, up to 49 percent of the company’s shares will be offered for sale, dependent on market conditions.
The sale, along with that of Mighty River Power, comes as part of the Government’s asset sell down programme, focused on selling shares in state owned companies. Mighty River shares were listed on the IPO at $2.73 each, at 9.2 per cent premium on the listing price. These sales have established a market value for the company of about 3.8 billion dollars.
The purpose of the sell down scheme is to contribute to the Government’s Future Investment Fund. Thanks to the sales with the likes of Mighty River Power, the fund has allocated spending of 1.5 billion over the next few years. A percentage of this will go to schooling, KiwiRail and to assist with the Christchurch rebuild.
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