Financial analysis and equity research specialist Woodward Research today issued comments in response to public perceptions of potential assets sales by the government of New Zealand.
Nick Lewis, Senior Analyst and Partner at Woodward Research said, “The proposed Mixed Ownership Model, or asset sales, has become the defining issue of this election, yet we still see serious misperceptions of this crucial issue. Given its relevance, we felt compelled to offer impartial comments on the implications of asset sales for the average New Zealander.”
The government announced in January 2011 that if re-elected in November 2011, it would proceed with the initial public offerings (IPOs) of four state-owned enterprises (SOEs) including the three electricity generator/retailers Genesis Energy, Meridian Energy, Mighty, River Power, and the coal resource company Solid Energy. The government also said it would seek to further reduce its stake in Air New Zealand from its current 74% interest.
The announcement included two key points; firstly, that the government would maintain legal control of the four electricity companies by retaining at least 50.1% interest, and secondly, that the average retail investor in New Zealand would be “at the front of the queue” to gain access to shares in these companies when they come to market.
