28 Jan 2011

Energy companies right for part-privatisation - Weldon

7:04 am on 28 January 2011

NZX chief executive Mark Weldon says the four state-owned energy companies being earmarked for possible part-privatisation are the right ones to test the market with.

Privatisation of public assets is back on the political agenda after the Prime Minister John Key announced on Wednesday that National is considering the partial sale of Mighty River Power, Meridian, Genesis and Solid Energy.

National also considering reducing the Government's 78% shareholding in Air New Zealand.

Mr Weldon says the energy companies are long-term, well-known, strong cashflow generators that will appeal to investors.

"These are large scale companies that have expertise that they can take overseas," he said. "I think the Air New Zealand model works and would work for these companies."