NZX eyes the state-owned cash cows

NZX is continuing to eye partial floats of state-owned enterprises as it seeks fresh transfusions of assets to replace the flow of companies off the sharemarket.

At the annual meeting in Wellington yesterday, chairman Simon Allen said the company would like to see a higher level of asset ownership by all New Zealanders via the sharemarket.

"The most obvious place to look on the asset side is the vast store of infrastructure and energy assets that are locked up in state ownership."

The same theme was taken up by chief executive Mark Weldon after the meeting.

Responding to questions about NZX's strategy to replace companies that have continued to leave the market as a result of takeovers, Weldon said much of the economy remained either in the hands of a co-operative or the Government.

"Our job is to make sure that if a different ownership on either of those perspectives be deemed in the interests of the shareholder, whether it's the taxpayer or a co-operative, that we can provide the right model for that."

Weldon said NZX supported Economic Development Minister Trevor Mallard's call this week for SOEs to be more aggressive in pursuing business opportunities.

"SOEs ... need to be a driver on growth and not a drag."

Meanwhile, New Zealand Shareholders Association representative Martin Dowse said he believed the association had received a fair hearing of its concerns about the approval process for Weldon's 5 per cent pay increase for the 2005 year.

The association had requested a non-binding shareholder vote be taken to approve the pay rise.

The results of the poll were to be released today.