Big banks get slice of SOE action

ANZ NZ, ASB named to Mighty River Power IPO retail syndicate alongside Craigs Investment Partners and Forsyth Barr

23rd Jul 12, 1:17pm by Gareth Vaughan

Treasury has named ANZ New Zealand, ASB, Craigs Investment Partners and Forsyth Barr as the retail syndicate for the Government's initial public offering (IPO) of Mighty River Power shares.

At the same time Treasury has named a retail syndicate panel for the full SOE selldown programme. Along with the firms named to the Mighty River Power retail syndicate, this also includes BNZ, Kiwibank and Westpac.

"Members of the retail syndicate for the Mighty River Power IPO are responsible for marketing the shares to New Zealand retail investors, with an emphasis on helping to achieve the Government's objective of 85-90% New Zealand ownership at the time of the share offer," Treasury says.

"Syndicate members will work with the retail broking arms of the joint lead managers (First NZ Capital, JBWere/Goldman Sachs and Macquarie) for the offer to help New Zealanders understand how the share offer process works and how they can participate. They will have a particular focus on first-time investors."

Treasury says their work will include nationwide public roadshow meetings and presentations, marketing the offer to retail investors in New Zealand, and working to get applications from New Zealanders for the offer. They'll also provide investor education to potential New Zealand investors unfamiliar with direct share investment and the sharemarket.

ANZ (including the National Bank) and ASB's appointment is designed to provide substantial distribution capacity to support the Government's widespread New Zealand ownership goal, Treasury says, given they have more than 500 branches and offices between them and very large customer bases.

Yesterday Prime Minister John Key said the minimum application size for Mighty River Power share parcels will be NZ$1,000. Key also said New Zealanders seeking up to NZ$2,000 worth of shares would not have their offer scaled back, and those who keep their shares for about three years will get a loyalty bonus, being additional shares.

The Government wants to sell down up to 49% of Mighty River Power, Genesis Energy, Meridian Energy and Solid Energy. First off the block is Mighty River, with the sales process planned to kick off before the end of September. The Government also wants to sell down its three-quarter holding in Air New Zealand to no less than 51%.

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6 Comments

by ngakonui gold | 23rd Jul 12, 2:25pm 1343010327

Forsythy Barr. are they the company that was involved with the South Canterbury Finance debacle.

Thats the end of my interest in the shares

by Andy Rodgers | 23rd Jul 12, 4:47pm 1343018845

I couldn't believe that FB was chosen after their debacle with SCF. FB must be a big contributor to National Party funds.

by Trolleyboy | 23rd Jul 12, 4:33pm 1343017985

More trotters in the trough.......

by moa man | 24th Jul 12, 7:04am 1343070250

Ticket Clippers seem to be miffed at being unable to syphon off investors funds via fees.

SOE bonus unfair say big investors.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=108…

"I just don't think the New Zealand public is ready to be buying shares. The assumption is that people understand what they are buying."

Says a Mr Taite, who also happens to be president of the Institute of Financial Advisers.

And ..........

Rickey Ward, head of equities at Tyndall Investment Management, said it was disappointing the bonus offer would not be open to institutional investors including KiwiSaver schemes.

"We are managing the money on behalf of New Zealanders - why shouldn't we be entitled to it as well?"

Poor dears, never mind.

by mgdwalker | 24th Jul 12, 11:26am 1343085994

With Forsyth Barr under investigation by the Commerce Commission for their mis-selling of the Credit Sails product to New Zealand investors in 2006, it is a poor indication that the Commission will be unlikely to go to court to prosecute Forsyth Barr when this government gives FB responsibility to "manage" ordinary investors' entry into the SOE securities. For those that do not know, FB pushed $91 million of Credit Sails fixed interest product on FB clients and others (collecting the fat commission), which later lost all its value. This product was Tripple A rated by Standard and Poor in 2006. The Key Government is clearly protecting its friends in the finance industry in NZ at the expense of the mum and dad nz investor. It is shocking and disgraceful.

by Plan B | 24th Jul 12, 12:29pm 1343089779

is there going to be a market in people who have shares selling the right to them in three years time? So that the bonus can still be collected but the benifit pass on to someone else?