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Genesis shares worth more - research
Five research reports into the value of Genesis Energy shares have been released by the NZX this morning. Read them all here.
Five research reports into the value of Genesis Energy shares have been released by the NZX this morning. Read them all here.
Pricing for the Genesis Energy share offer means the Govt's controversial partial asset sales programme will just make it over the line for the revised $4.6b to $5b target set after Solid Energy was taken off the block.
The Treasury would have liked more "Mum and Dad" small investors to have bought shares in electricity generators Mighty River Power and Meridian Energy.
The share price for Genesis Energy will likely be set in the mid to upper end of its range in light of the Government's decision to sell up to the full 49 per cent, say analysts.
The government will sell 49 per cent of Genesis Energy after feedback from institutions and brokers gave it confidence it didn't need to reduce the size of the selldown.
If the price is set too low, money is left on the table and assets can be sold off at a discount, writes Christoph Schumacher and Sasha Molchanov. This is neither desirable nor efficient.
Genesis Energy chief executive Albert Brantley, speaking at the launch of the Genesis Energy offer, complained about the company being labelled the "ugly duckling".
The Treasury has finally developed a fair and widely accepted process for the Genesis Energy IPO, writes Brian Gaynor.
The Government says shares in Genesis Energy will be priced in a $1.35 to $1.65 range and would include a loyalty bonus share offer.
Full details of the Genesis Energy float will be released today including the price range for the shares, a bonus share scheme and the timetable for its sharemarket listing.
Over the past couple of weeks, households have been receiving nasty surprises in the mail.
Households will be socked with power bill increases of as much as 24% next month and power firms and network operators are blaming each other over who is responsible.
The Govt's move to set the share price for the Genesis Energy float before retail investors have to pay up has won approval from an investment expert.
The structure of the Genesis Energy float is unusual but makes sense given the complexities of the company, says one investment banker.
The sharemarket float of Genesis Energy - the details of which are due out today - is likely to proceed along standard lines.
The National Government's flagship partial asset sales policy will end in the next month with the sale of Genesis Energy, said John Key.
Bill English has thrown the Opposition a curve-ball as they ready themselves for their unofficial three-week campaign to maximise the "no" vote in the referendum on partial asset sales.
The Government, fresh from the sale of shares in Mighty River Power and Meridian Energy, faces a harder sell when it comes to divesting a 49 per cent stake in the third and final power generator.
New technology allows households to track almost every detail of their electricity use.
Editorial: Naturally enough, the Government was keen to put the entire blame for what happened on "politicking" by Labour and the Greens.
If Meridian Energy had already floated, it's a fair bet that its share price would have dropped after the Opposition unveiled its electricity policy a week ago.
The Government has set a price range of $2.35 to $2.80 per share for the partial privatisation of Mighty River Power.
The Tiwai Pt power price stoush will probably have a small negative effect on the price of Mighty River - but it's not a showstopper say sharemarket analysts.
Potential investors in Mighty River Power, Genesis Energy and Meridian will be exposed to the financial impacts caused by any new charges linked to water or geothermal use and land resumption.
Genesis Energy chairwoman Dame Jenny Shipley says the state-owned enterprise is ready for partial sale but was coy on whether she would lead the company on the sharemarket.