WELLINGTON, Aug 31 (Reuters) - New Zealand investors are expected to end up owning the vast majority of shares in state-owned companies set to be partly privatised, with limits also likely to be imposed on the size of holdings, the finance minister said on Wednesday.
The sale of minority stakes in three power companies, a coal miner, and reduction of the government stake in the national airline, would likely raise between NZ$5 billion ($4.2 billion) to NZ$7 billion, and is being aimed at local investors.
'The government expects New Zealanders to own at least 85 to 90 percent of the SOE's (state owned enterprises) included in the partial sell-off,' Bill English said in a speech prepared for a financial conference.
He said the government would also probably impose a cap of 10 percent on any single shareholding to ensure the widest participation.
The policy is politically sensitive, but the centre-right National Party-led government has said it will proceed with the sales if it wins this November's election.
To counter opposition and fears of foreign ownership, the government has said it will retain a minimum 51 percent stake in each company and give preference to New Zealand investors in the share sale.
English has said proceeds from the sales will be used to repay debt and invest in new infrastructure.
He reaffirmed that the government still expects to return to a budget surplus in 2014/15. On Tuesday, English said extra costs caused by earthquakes in Christchurch would widen the 2010/11 deficit by around NZ$1.2 billion to a record around NZ$18 billion.
English reiterated that New Zealand has been weathering global financial turbulence better than many developed economies, but remains under scrutiny because of high external debt levels.
He said high commodity prices and strong trade links with fast growing Asia were underpinning the economy, while improved national savings would strength foundations, even if they slow recovery.
(Gyles Beckford) Keywords: NEWZEALAND ECONOMY/ENGLISH
(Gyles.Beckford@thomsonreuters.com)(+64 4 471 4321)(Reuters Messaging: gyles.beckford.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2011. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Get a feel for live tradingTrade Simulator Download here
0 Responses: NZ to cap stakes in privatised companies - FinMin
Posting Komentar