default-output-block.skip-main
National | Bill English

Mighty River Power share sales proceed

A $1 million advertising campaign funded by the tax-payer has begun to promote MRP share sales.  Up to 49% of the company will be sold to the public and the Government is promising that New Zealanders will be at the front of the queue.

Bill English says the Government expects to free up 5-7 billion dollars and estimates that will be around 3 percent of the countries total assets.

The Government says the money will be spent on modern schools, a hospital for Christchurch and will also assist to help avoid further Government borrowing.

The broader shareholder base is expected to be the average New Zealander, but with a minimum buy-in of $1000, that might be out of reach for many households.

However English says for those who can’t afford it, there is the option of investing with someone else also claiming the amount was the practical minimum of what they could offer.

There's a three week window from today to pre-register interest with an added sweetener to those who do possibly getting 25% more shares than those who doesn't register.

Minister of Health, Tony Ryall says New Zealanders applying for up to $2000 worth of shares will be guaranteed that amount.

Although a share price has yet to be determined,with those details available next month, it seems not everyone is happy with the privatisation of Mighty River Power.