23 Oct 2013

Share price for Meridian Energy revealed

10:49 pm on 23 October 2013

Investors will pay $1.50 cents a share for a slice of power company Meridian Energy.

The Government is selling a 49% stake in the state-owned enterprise and will receive an immediate $1.25 billion.

Once the second instalment payment has been paid, the Government will receive an extra $628 million, taking the amount raised to $1.88 billion.

The share price is at the low end of the indicative range of between $1.50 to $1.80 each.

Finance Minister Bill English said on Wednesday that 62,000 people took up the offer and the company will now be 86.5% owned by New Zealanders.

Mr English said fewer investors bought larger parcels of shares in Meridian compared with the earlier sale of shares in state-owned Mighty River Power.

He said the sale was still a success, despite a fall in the number of people buying shares.

But Labour Party State-owned Enterprises spokesperson Clayton Cosgrove said the sale was a failure and taxpayers have seen one of their biggest assets go, for a song.

The Green Party also said the sale had been a disaster and called on the Government to stop its privatisation programme.

Meridian Energy will list on the stock exchange at 1pm on 29 October.