The Government has set the price range for Mighty River Power shares at $2.35 - $2.80 per share, with the final price expected to be announced on May 8.
Finance Minister Bill English says New Zealand retail investors in the Mighty River Power share offer will receive one loyalty bonus share for every 25 shares they hold for two years from the offer, up to a maximum of 200 bonus shares.
'The loyalty bonus scheme is another way to encourage widespread and substantial New Zealand ownership of shares in MRP.
'It also recognises the loyalty of those New Zealanders who retain their shares and contribute towards the country's savings culture.”
The loyalty bonus scheme is available only to New Zealand retail investors – not to institutions in New Zealand or overseas.
'We think the size of the loyalty bonus strikes a good balance between promoting widespread participation in the share offer, rewarding New Zealanders who decide to hold on to their Mighty River Power shares, and being prudent with the costs of the share offer.”
The maximum cost of the loyalty scheme will not be known until the offer has closed and allocation decisions are made, but a bonus offer of 1:25 means the maximum cost will be four per cent of the value of shares allocated to New Zealand retail investors.
State Owned Enterprises Minister Tony Ryall says the share offer period, during which New Zealanders can apply to buy shares, is expected to open on Monday, April 15.
It will remain open for three weeks, with the expectation of it closing on Friday, May 3.
'We know many New Zealanders are likely to be buying shares for the first time and great care has been taken to ensure the offer document sets out all the information they may need to decide whether or not they want to participate in the share offer.
'The document is some 260 pages and sets out the relevant risks for people to consider.”
Tony says after the consultation period, the Government will announce the offer is open and New Zealanders will be invited to apply for shares.
'The offer period will be three weeks long, so there's plenty of time for New Zealanders to read the document and consider whether they want to be involved.”
Potential investors are encouraged to talk to their financial advisors if they want personalised advice.
The Mighty River Power share offer document was formally registered today and is can be viewed at www.mightyrivershares.govt.nz
9 comments
No wonder power prices so high
Posted on 05-04-2013 17:19 | By Contradictus
Only the other day I read that our wonderful govt had increased the directors fees a whopping 73%. You'd have to wonder how much (or how little) time these directorships take anyway? I used to respect Ministers Ryall and Bridges but I'm losing that now.
untitled
Posted on 06-04-2013 09:17 | By daisyduck33
Why are we buying shares in a company that we already own,as taxpayers? When Tauranga Electric Power Board became Trustpower, 20 years ago,we were given $1000.00 worth of shares...not sure of current value. Its a scam, and the politicians must be smirking at the NZ publics stupidity!!!
@ daisyduck
Posted on 06-04-2013 09:42 | By Captain Sensible
Every week the govt borrows $250 million of which most pays for our ever increasing welfare bill. This money must be paid back with interest. By selling shares in MRP, the govt is putting some brakes on the borrowing. They are not giving it away. Do you want us to be the Greece of the SW Pacific? There are billions of tax payer dollars given to beneficiaries every year who work the system. The govt would not have to sell shares if these beneficiaries were more honest.
To Captain Sensible
Posted on 06-04-2013 10:15 | By daisyduck33
Alot of the beneficiary money is given to the over 65's who believe it is there divine right to have this money, regardless of their assets or income. That's a good place to start putting on the brakes. I've heard many pensioners say they deserve the pension because they have "paid tax all their life" .That's rubbish, their tax was never enough to cover up to 30 years living expenses, and most women didn't pay tax because they didn't work. And all this does not excuse the selling of shares in companies we already own.
Ryall and Bridges should be taken to task
Posted on 06-04-2013 10:47 | By Phailed
Our electricity prices are ridiculously high and keep rising. Simon Bridges is Minister of Energy I believe, and needs to act. Disappointing to see Tony Ryall defending the 73% pay increase for Mighty River Power directors. Out of touch I think.
Phailed
Posted on 06-04-2013 13:24 | By YOGI
The directors fees are like a "chain reaction" a good exampel is the TCVL directors fees are about 230% than before, this will cause a "knock on" effect to all other directors, boards, underlings and seat warmers. So the Merdian change will have the same effect to, what you can expect is that the power proces will move to the same level as prices inc rease to keep the profits up there and many a shareholder demands "more" annually of course.
@ daisyduck
Posted on 06-04-2013 18:23 | By Captain Sensible
These pensioners are entitled to something back from the govt after their working life. It was the other beneficiaries I was referring to. The ones that produce babies one after the other expecting taxpayers to pay for everything, career unemployables, all expecting a free ride.
To Captain Sensible
Posted on 07-04-2013 08:24 | By daisyduck33
...and just why are pensioners entitled to "get something back from the govt after their working life"? Your comment is nonsensical. The "govt" use my taxes to give people money for just being over 65. Many don't raise a finger to give anything to society, and many earn income from other means. The bulk of the billions spent on social welfare and health are spent on people over 65.
@ daisyduck
Posted on 07-04-2013 21:25 | By Captain Sensible
One rule for all. If someone saved hard why should they be penalised and given nothing while someone who did not save, gets a pension? I will take every cent I am entitled to because I contributed hundreds of thousands of dollars which was stolen from me in a form of tax. If you don't want yours, then don't take it. Admittedly, pensioners who have had their whole life on welfare will get something under this welfare state even though they are undeserving. I would like to see pensions based on what taxes people/spouses have paid throughout their lives but in PC NZ, that won't happen..
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