More certainty seen as consequence of sale delay
The head of one of New Zealand's largest fund managers says the delay in the partial sale of Mighty River Power will give investors more certainty in buying shares.
A partial float of the State energy company was expected to take place this month but the Government has put it off to make more time to consult with Maori.
The sale of up to 49% of shares in Mighty River will now take place between March - June next year.
Tower Investments chief executive Sam Stubbs said the delay did not come as a surprise.
''I think the markets have got ready for a delay,'' he said. ''Long term, I think there will be more money to invest.'
Meanwhile, investment advisor Brian Gaynor says selling shares in three State electricity companies in a 12 months is impossible.
Mr Gaynor, of Milford Asset Management, said it's important for this Government that the asset sales programme is done well.
He said they have already had a setback over Mighty River Power, and to try to float shares in three companies in a year is a hard ask, if not impossible.
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