Mighty River float documents to be released today

Friday 5th April 2013

Details of the Mighty River Power share issue are expected to be released to the public at around 12.30 pm today.

About 440,000 New Zealanders have pre-registered their interest in buying Mighty River shares so far. MRP is likely to be the biggest share float in New Zealand and Australia till date.

The Government seems to be ecstatic with the interest so far and MRP will the first of partial privatization or mixed ownership model (MOM). There will be a 49% sell down of MRP and it also the Government’s intention to follow it up with two other state-owned generators - Genesis and Meridian.

Mighty River is one of New Zealand's largest electricity companies. Its generating assets mostly comprise a series of hydro dams along the Waikato River. It also has extensive geothermal assets.

The offer documents are expected to spell out the risks involved in investing in the utility and are expected comment at length on the risks that the possible closure of the Tiwai Point aluminium smelter might have on the electricity market.

As pointed in NZ Herald MRP‘s float is estimated to be worth between $3.2 billion to $4.8 billion.

Interested parties should remember that pre-registration for MRP is not a commitment to buy shares, and someone pre-registering interest may decide to not apply for shares in Mighty River.

It is advised to read the statement thoroughly or seek investment advice before making decision.

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