Mighty River Power shares tipped for September sale

Shares in Mighty River Power are expected to be offered for sale by September, with the former stateowned enterprise listed on the stock exchange in late October or November.

With the legislation opening the door for the sale passing its final vote in Parliament last week, officials have stepped up preparations for the float of the power company.

It will be the first of the Government’s planned assets sales. Up to 49 per cent of Genesis, Meridian and Solid Energy, as well as Air New Zealand, are set to follow.

It is understood Treasury will set a reserve price on the float, which is expected to return about $1.8 billion to the Government for the 49 per cent share on offer.

It will pull the plug if the price achieved falls short or if a global crisis hits sharemarkets.

Prime Minister John Key has pointed to the estimated $110b in bank term deposits that could be a source of investments in the shares, with the Government keen to ensure as many small Kiwi investors as possi- ble buy into the company.

He has also signalled plans for a minimum application amount of about $1000 with small shareholders guaranteed to receive up to a set value of shares, likely to be between $2000 and $3000.