Key confirms early Genesis float

Genesis owns and runs the ageing Huntly Power Station. Details of its partial privatisation are expected by the end of next month. Photo / Amos Chapple

The Prime Minster has said the float of Genesis Energy is likely to go ahead sooner rather than later confirming investment industry expectations.

On Monday the Business Herald reported that Genesis could be listed on the stock exchange in April, sooner than previously indicated.

Past indications had put the float on track for a May listing on a timetable similar to Mighty River Power, which listed on May 10, 2013.

But Treasury officials are believed to have already begun visits to institutional investors in preparation for the float and industry expectations are that it is likely to happen sooner.

Yesterday John Key confirmed the Government's plans to float its third energy company and said it would happen sooner rather than later.

"I am very much of the view it is going to take place. I certainly haven't seen any contrary advice," Key told Radio NZ.

He said advice received from Treasury this week was that a sale was "definitely a possibility".

"Treasury were confident we could do it."

The Government has always reserved the right to change its mind if market conditions are not favourable for the asset sale.

The Herald understands a final call on the sale is likely to be made by early March.

Genesis is due to release its half year result next Wednesday. The financial information must be included as part of an investment prospectus for potential investors.

An offer document could be out as soon as the end of March based on a six-week turnaround.