State owned power company Meridian Energy's 49% would be offered to an initial public offer of its shares by the third quarter of the year. This was announced by New Zealand Finance Minister Bill English during today's budget discussions.
The government will engage the services of advisers to help sell Meridian, which is the largest electricity generator in terms output of the country. This is the second planned divestment sale after the New Zealand government had raised NZ$1.7 billion or US$1.4 billion with the sale of half of Mighty River Power Ltd earlier in the month.
The Mighty River Power Ltd share sale was the country's largest IPO then but with the Meridian Energy sale, the volume may just as easily surpass and break all existing records.
Prime Minister John Key has promosed to raise between NZ$5 billion and NZ$7 billion through share sales of state owned or controlled companies. He had announced previously that he was intending to sell at least 49% of Genesis Power Ltd and decrease government shareholdings in Air New Zealand Ltd to no less than 51%.
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