It may be no coincidence that Rupert Murdoch's News Corp put its Sky Television stake on sale yesterday just as the Government was preparing to float shares in Mighty River Power. It suggests the sharemarket is going to get a bigger injection from the privatisation programme than even the Government might have hoped. Sky may not be the only offering that seeks to capitalise on heightened interest in the market, or perhaps fears that power companies will absorb the available new capital unless others move quickly.
They will need to move very quickly to match the pace the Government set yesterday at the Cabinet's first meeting since the Supreme Court ruled the float would not materially harm Maori claims to flowing water and geothermal resources. The case has caused the Government to miss its deadline for completing the Mighty River float within the first quarter of this year but it now expects to have the company listed on the stock market shortly before the Budget on May 16. The offer will be advertised from today, with pre-registration of interest opening immediately and acceptances starting in mid-April.
A property as attractive as Sky TV should give a power company a good run for the available funds of small investors. Sky will be a popular property, having given New Zealanders good service in News Corp's hands. It has backed rugby to the mutual advantage of the company and the game. The company has sold subscription channels to half the television audience in this country and there can be no doubt its splendid sports channels have been the main attraction.
News Corp's sale of its 43.6 per cent controlling stake gives the New Zealand operation every chance of becoming locally owned. With no potential takeover in sight, no stake is likely to be as high as the 20 per cent that requires a full takeover offer. News Corp is offering its shares at $4.80, considerably less than the Todd family sold their 11 per cent for in November and a 7 per cent discount on the share's closing price last Friday.
