Articles tagged MOM

Finance Minister Bill English has admitted the prospects for a Genesis Energy float are now "50:50" next year after another big slide in the share prices of the already partially privatised shares and reduction in Treasury's estimate of the likely proceeds.

The Government's three partially privatised share sales had their worst day yet on the stock market on Wednesday, sparking heavy criticism from investors and calls from some for the Government to abandon the final Genesis Energy float due in the first quarter of next year.

The Government's announcement on Sunday it will sell around 220 million shares in Air New Zealand through a book-build to brokers and fund managers begs one question. Will the Government make a profit on the NZ$885 million it injected into Air New Zealand in 2002 to rescue it from bankruptcy?

The partial privatisation and float of Genesis Energy faces a potential legal challenge over the ownership of the water in its Tongariro power scheme, or even the eventual downgrading of the scheme if iwi diverts water back into the Whanganui River.

Prime Minister John Key has ruled out the partial float of Kiwibank after the next election, instead saying it was more likely to be a recipient of capital from the 'Mixed Ownership Model' (MOM) than a provider.

Prime Minister John Key raised the possibility he could propose more SOE floats early next year ahead of the November 2014 election, but immediately downplayed the prospect of anything major.