Bank of New York Mellon emerges with 8.1 percent stake in Meridian Energy

Thursday 31st October 2013

Bank of New York Mellon Corp, which has US$1.5 trillion of assets under management, has bought 8.1 percent of Meridian Energy after New Zealand's government sold 49 percent of the nation's largest energy electricity retailer and generator in an initial public offering this month.

New York-based BNY Mellon, which is also the world's largest custody bank with US$27.4 trillion in assets under custody, bought the shares in the days following the stock listing on Tuesday, according to a substantial security holder notice posted on the NZX today.

Meridian Energy's instalment receipts debuted at $1.08 on Tuesday after tepid demand in the initial public offering saw the stock sold at $1.50 a share, the bottom of the indicative range of $1.50 to $1.80, with a smaller-than-expected pool of investors. The stock slipped 0.9 percent to $1.09 today.

The government offered the Meridian shares in instalment receipts to sweeten the offer, with $1 upfront and the promise of full entitlement to dividends, and the remaining 50 cents in May 2015.

BusinessDesk.co.nz

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