Want to know more about the state-owned energy companies set to go on the block?
Minister for State Owned Enterprises Tony Ryall today launched a website for New Zealand residents with details on MightyRiverPower, Genesis Energy, Meridian Energy and Solid Energy, as well as Air New Zealand.
The government is set to sell up to 49% stakes in the four energy companies, and sell down its 74% stake in Air New Zealand to no less than 51% in a bid to raise NZ$5-7 billion over the next five years.
MightyRiverPower is the first to go on the block sometime in the third quarter this year. Either Genesis or Meridian are likely to be second (and third), with Solid Energy picking up the rear.
See the announcement from Ryall below:
The Government has today launched a website to provide New Zealanders with information about the Government’s mixed ownership programme.
State Owned Enterprises Minister Tony Ryall says the new website, www.governmentshareoffers.
govt.nz, will give New Zealanders factual information about the proposal to sell up to 49 per cent of four State Owned Enterprises - Mighty River Power, Genesis Energy, Meridian, Solid Energy, and a further stake in Air New Zealand. “The website provides information about the share offer programme including what mixed ownership means, why the Government is undertaking the programme and how a public share offer works,” Mr Ryall says.
Mr Ryall says the website content reaffirms the Government’s core share offer commitments, including:
• The Government will retain at least 51 per cent ownership of each company;
• The Government expects 85-90 per cent New Zealand ownership. This means Kiwi investors will be at the front of the queue for shares; and
• No investor will be able to own more than 10% of each company.
“With New Zealand’s debt going from $50 billion today to $72 billion in three years’ time, New Zealand needs to control debt.
“We expect to receive $5 billion to $7 billion in proceeds, which will help control debt and allow us to build new schools and hospitals.
“The programme will also reinvigorate the capital markets and bring stronger commercial disciplines to each of the mixed ownership model companies.”
The Government remains on track to proceed with the first share offer, for Mighty River Power, in the third quarter of 2012, market conditions permitting.
Under securities law, there are restrictions on what owners can say publicly about the business and their shares in advance of an offer. An exemption from some of these restrictions has been granted by the Financial Markets Authority (FMA). Such exemptions are quite common, such as the recent exemption for Fonterra, and past exemptions for the float of Contact Energy and at Auckland International Airport.
Website address: www.governmentshareoffers.
govt.nz Pre-Prospectus Disclaimer
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 the relevant offer of shares is available.
22 Comments
A slick site. I checked out MRP's 2011 Annual Report,
http://www.mightyriver.co.nz/Results/Financial-Information/Reports/2011-Annual-Report.aspx
They say nothing about their Turitea and Puketoi wind farms on earthquake fault lines - the Wellington fault and Northern Ohariu faults. Why is that? Will they come clean in their prospectus?
Facepalm. What a silly thing to say. I'd want assurance that the turbines weren't going to collapse along with any money I use to buy shares. Do you own buildings in the Christchurch CBD? Looking to buy a bridge in NY? Any investment requires due diligence, how many NZ mums and dads are able to to do that? Let Mighty River Power state categorically the wind farms are completely safe and I may pull out my cheque book - although the question of growth in electricity use to justify investing is yet to be answered. I see they rightly raise the issue of no current growth in the annual report. In fact when you think about it what will consumption look like if there is an economic collapse as so many here are predicting. What will the shares be worth then?
Lots of questions unanswered at this stage.
No it isn't, if you look on a map of EQ fault lines, that will show you where they are in relation to the turbines, They will also hae been engineered to withstand large EQ's as per NZ building codes, or they will need to be strengthened to meet them.
Under your arguement, a buiness that has buildings should disclose that they are also in EQ zones, or disclose if there was a fire in the future, the building may be condemed, It is all part of research the buyer must carry out. There is noone forcing people to buy shares. It is a little like the finance companies, where investors needed to do their own research too, how much handholding do people need?. Any business could be affected by an EQ, but how many would discolose that. Not to mention that a business would ormally have insurance to cover that sort of thing. I have never seen an apartment for sale in Wellingtons CBD that has an EQ warning with it.
Plus are they legally required to disclose this?
Thank you ROB, BTW, are you a well known Turitea wind farmer? Is the substation on your airstrip and the 125 m high turbines close by, along with 53 metre high transmission towers with the Northern Ohariu fault, running straight through them? The Wellington fault is right next to them on the other side.
Let me clear up one thing for you, airports are horizontal, turbines are vertical.
The investing public is protected by a raft of legislation from fraud. Are you are making a pitch to the naive and gullible for your own financial gain?
Yes, under the Securtiies Act a full disclosure is required.
See section 43F
Prohibition of distribution of investment statement
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(1)The FMA may, at any time, make an order prohibiting the distribution of an investment statement if the FMA is of the opinion that the investment statement—
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(a)is likely to deceive, mislead, or confuse with regard to any particular that is material to the offer of securities to which it relates; or
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(b)is inconsistent with any registered prospectus referred to in it; or
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(c)does not comply with this Act or the regulations.
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Here's some homework for you. Check it out, and please share your views with us all.
http://www.legislation.govt.nz/act/public/1978/0103/latest/DLM3724900.html
I would think hydro would be more of a risk of failure from an EQ, than wind. A large EQ may knock out a few turbines, but with a hydro station, damage will affect the whole thing. You do have to realise that these turbines are well engineered, as they have to cope with vertical huge wind loads on them, perhaps even larger lateral loads than they would experience an EQ. Both Hydro and Wind are still better than Nuclear in an EQ zone, as was seen in Japan.
I read this on this website http://ramblingsdc.net/Australia/WindPower.html
Wind turbines are highly resistant to damage from earthquakes and tsunamis. None of the 1746 wind turbines in Japan were damaged by the earthquake and tsunami of 2011/03/11.)
Give your deliberate misinformation a rest.The nearest Japanese wind turbines were 300km from the epicentre. The nearest Turitea turbines to the Wellington fault are less than 100 metres away, right on an epicentre. The Northern Ohariu fault runs right through the southern group of turbines. This is the biggest con in the country's history and people are waking up to it.
Your desperation is on show for all to see.
Why were they allowed to be built in the first place then, and why haven't the media got onto this? It is possible to create earthquake resistant structures. And even if they all instantly collapse from a mag 9 earthquake, is it going to cause major problems to NZs energy needs, as wind generation is still a relatively small part of NZs generation. That is one reason why energy generation is shared around the country, and we use different types, so to share the risk. You don't put all your eggs into one basket. Companies do also have insurance to cover losses. But if you think it is too risky, don't invest.
I am actually sure the wind farm will be at the bottom of peoples minds if a major earthquake happens anyway, as it will likely result in major loss of life in Wellington and major damage.
You're not fooling anyone. You know the corruption inside out. ;-)
No truth there I can see..
Hmm, from the AGW bit or the libel bit(s)? Trouble with libel I think its almost un-limited in terms of cost recovery from lawyer fees?.......but if they are so sure I would think they can kick off their own case sue the ppl in question or "officially" publish....
From the former I think there is nothing stopping an AGW denier going to court? I think the founder of the US Weatherchannel promised one....cant find anything to suggest it went ahead....I think it would be great if he did. Of course once there you can get the court to go back into all sorts of records and correspendence....to determine the truth......funny that after decades no denier has gone there, isnt it.....
rent seeker, nope I have no vested interest past facts and the truth.....armed with those I'll make my own call.
regards
But its not Qs for the energy company to put in a prospectus as these are external.
Historically NZ electricity growth has been a few % per year. Historically this recession is like no other in terms of curbing demand for this lenth of time. So in recent (50 years) memory its prefectly valid given the expected future return to use growth to plan and have more plant ready to meet that, continuity of business and our economy really demands such a strategy.
The economic collapse is/will be probably driven by lack of [cheap] oil....in that scenario ppl will move to electrical power. So it could be a very good investment longer term.....but thats for a share buyer to decide on. In my case I sold all my shares incl electricity company ones, but I expect to buy back in and such as this will/does interest me (in fact I expect little value in much else)...in due course say 5 years+.
regards
An interesting site. A simple tick of the box and you're a NZ resident (lol),
And I still didn't see any explanation in terms of how they intend to implement the "New Zealanders will be at the front of the queue" promise. Surely at some stage they will have to somehow verify an individual (or an entity) NZ resident/domiciled status?
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