22 July 2012
NZers at front of queue for shares - PM
The Government will ensure New Zealanders will be at the front of the queue for shares in Mighty River Power, with Prime Minister John Key today announcing further details about the sale of shares in the energy company.
Speaking at the National Party annual conference in Auckland, Mr Key said the initiatives will make buying shares easier for New Zealanders, while at the same time encouraging long-term share ownership.
“Each of the share offers will be organised so New Zealanders are at the front of the queue for shares. When we do the share offers, we expect around 85 to 90 per cent New Zealand ownership of these companies. Shares will be owned by the Government, individual New Zealanders, and funds like KiwiSaver, ACC and the Super Fund.”
The four initiatives announced today are:
· The appointment by Treasury of a retail syndicate of sharebrokers and banks to help potential investors - particularly first-time share investors - understand how they can participate in the share offer.
· A minimum application for Mighty River Power shares of $1000.
· A guarantee that New Zealanders seeking up to $2000 worth of shares will not have their application scaled back.
· The provision of loyalty bonus shares in Mighty River Power for New Zealand investors.
“The appointment of the retail syndicate will help to make it as easy as possible for New Zealanders to take part in the offer and get the information they need to make informed decisions,” Mr Key said.
“For example, the syndicate will shortly be able to tell people how they can pre-register their interest on the internet or through an 0800 number, without having to commit at that time to buy shares.
“Accessibility to the share offer is also broadened with the minimum application size of $1000 for Mighty River Power shares, meaning a wide range of New Zealanders will be in a position to apply.
“Those New Zealanders seeking up to $2000 worth of shares will not have their offer scaled back. In other words, New Zealanders applying for up to $2000 worth of shares are guaranteed to receive the shares they apply for.
“Big institutions aren’t getting any guarantees, so this is another way we’re putting everyday New Zealanders at the front of the queue,” Mr Key said.
“Finally, we have agreed to offer New Zealanders a loyalty bonus. New Zealanders who keep their Mighty River Power shares for a certain length of time will get a loyalty bonus, in terms of additional shares.
“We’re working through the time period involved, but it’s likely to be somewhere around three years.
“We believe it is important to recognise the loyalty of New Zealanders who retain their shares, and we want to encourage long-term share ownership among New Zealand savers.”
Details of the loyalty bonus and other aspects of the Mighty River Power share offer will be announced closer to the time.
“The Government’s intention is clear. As promised we will put New Zealanders at the front of the queue for shares and we’re confident of widespread New Zealand ownership.”
Media contact: Jane Fraser-Jones 021 830 277
The Crown is considering offering shares to the public in one or more of Genesis Power Limited, Meridian Energy Limited, Mighty River Power Limited, Solid Energy New Zealand Limited and Air New Zealand Limited. No money is currently being sought and no applications for shares will be accepted or money received until after an investment statement containing information about for the relevant offer of shares is available.
This press release is not permitted to be distributed in any country outside New Zealand. No decision has been made as to whether an offer will be made in any country other than New Zealand. Nothing in this press release constitutes an invitation to subscribe for, or offer of shares, securities or financial products to any person, whether in New Zealand or in any other country.
This release does not constitute an offer of shares for sale in the United States or to, or for the account or benefit of, any person in the United States. The Crown’s shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from, the registration requirements of the U.S. Securities Act of 1933.
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