Milford Asset Management executive director Brian Gaynor says the risk of the Tiwai Point aluminium smelter closing will not put off Mighty River Power investors.
On Friday, the Government released the prospectus for the sale of 49% of the company, revealing that the target price range is between $2.35 - $2.80 per share.
Mr Gaynor said the risk from the Tiwai Point smelter won't put people off from investing.
He said that if the plant - which uses 15% of the country's electricity - was to close, it would not be for another five years or so.
Mr Gaynor thinks $2.80 is at the high end and $2.50 - $2.60 would reflect the risks. The dividend yield could bring in a minimum return of 6%, which beats bank deposit rates.
Rio Tinto, which owns the smelter, says it will go back into talks with Meridian.