KEY POINTS:
A return to sharemarket listings could lie ahead despite the rash of mergers and private equity buyouts last year, a sharemarket legal adviser says.
Brynn Gilbertson, a merger and acquisition (M&A) expert with Bell Gully, said New Zealand businesses would continue to be bought and sold this year.
"Private equity has shown they're keen to look across virtually all industries and vendors are responding [but] ... the largest completed deals of the year have not been to private equity. We would expect to see continued M&A buoyancy in the year ahead."
Gilbertson was responding to figures from US research house Thomson Financial which show that global M&A activity reached an all-time high last year.
The value of announced deals in New Zealand rose 10.9 per cent in 2006 to US$14.2 billion ($20.39 billion), led by Australian purchases of US$3.8 billion.
Although 2006 was a lean year for new floats, Gilbertson believes the market's strength will entice more companies to list this year.
The "mutual recognition of securities offerings" regime would boost new listings by making it easier for New Zealand and Australian companies to raise capital across both countries, he said.
The rules, such as allowing one prospectus in most cases, are expected to be introduced in the first part of this year.
- NZPA
