December 19, 2012
Rush on to sell power companies
The Government has indicated it could push through the listing of three state power companies next year if it can fend off the New Zealand Māori Council’ challenge in the Supreme Court.
The council and Waikato River tribes say the sale of shares in the companies will affect the Crown’s ability to make redress if they are found to have rights akin to ownership of water, and they want those rights determined first.
Finance Minister Bill English says the big demand for Fonterra’s dairy fund units shows the market could have the appetite for three major floats in a year.
The NZX share market index is up 21 percent for the year, and low interest rates are creating demand for shares.
The Government wants to raise it between $5 billion and $7 billion by selling up to 49 percent of Mighty River, Meridian and Genesis Energy.
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