Private equity firms have launched takeover offers for The Warehouse Group and retirement village company Arvida. Will the stock exchange fight back? Video | Corey Fleming
The head of the New Zealand Stock Exchange is suggesting the public market is a positive place for the Government to look to if it wishes to sell some of its taxpayer-owned assets, including Kiwibank.
“We’ve certainly been speaking to government about the opportunity,” NZX chief executive Mark Peterson told Markets with Madison.
“We’re saying [to government] public markets are incredibly important and can help facilitate it.”
Peterson has suggested the returns earned from selling down part of all of the Government’s stake in some companies, could help fund other areas of economic importance.
“If we think about schools, education, health, you know they are top priorities for New Zealand and maybe there’s a way we can actually redirect some investment into that.
“The idea is there ... Let’s see what the Government wants to do.”
The mixed-ownership model was common on the exchange, including for Air New Zealand and power companies. It had been used recently by councils to partially list their ports.
An NZX spokesman said NZX representatives and a small group of people from the New Zealand capital markets community had been meeting with Finance Minister Nicola Willis, Commerce Minister Andrew Bayly, Infrastructure Minister Chris Bishop, and other officials.
The Capital Markets 2029 report, released in 2019, was the basis of their discussions.
“Those meetings have been positive and productive,” the spokesman said.
The stock exchange was clearly keen to put more opportunities in front of investors as some of its major listed companies became takeover targets.
Private equity offers arrived for The Warehouse and retirement village company Arvida last month, with speculation circulating that other stocks under price pressure could be next.
“That’s not really the thing that you want to see,” Peterson said of the offers.
“But you know, at the end of the day when somebody wants to come and pay a price, which is a substantial premium over where its [shares are] being traded, then it’s a little hard for us.
“We’ve just got to make sure, alongside the industry, that we go and find those businesses that can come in [to the NZX].”
The Warehouse is subject to a takeover offer worth between $520 million and $590m from an Australian private equity firm and significant owner Sir Stephen Tindall. Photo / Jason Oxenham
He said the NZX was in talks with businesses involved in infrastructure, agriculture, and technology about potential listings.
“We’ll keep that under wraps, but in all seriousness, there are people who are interested.”
Watch NZX chief executive Mark Peterson discuss the state of the exchange and how he plans to excite investors, in today’s episode of Markets with Madison above.
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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Reidy is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
