New Zealand government to sell 49 per cent of Genesis Energy

• 10 years ago (2014-03-26)
• Junior Isles

North America 1021

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The New Zealand government has said this week it will sell up to 49 per cent of power company Genesis Energy Ltd, New Zealand’s largest electricity and natural gas retailer, earning up to NZ$800 million ($684.5 million) from the sale.

The government is making 40 per cent of Genesis available in an off-market ‘bookbuild’ with institutional investors, to gauge demand, and a further 9 per cent available for direct acquisition by retail investors.

A share price range of between NZ$1.35 and NZ$1.90 is estimated and the offer will open on March 29, with the company due to list on the New Zealand and Australian stock exchanges on April 17.

The Genesis sale marks the end of New Zealand’s asset sale programme in which 49 per cent stakes have been sold in a variety of power firms, including Mighty River Power Ltd and Meridian Energy Ltd.

The asset sales have brought in NZ$3.93 billion ($3.36 billion) for the New Zealand Treasury, with the funds being used to reduce the government’s debt burden.