Headline: Mighty River buy-back makes a farce of asset sales
John Key’s asset sales have descended from failure to farce today
The National Government’s asset sales have gone from failure to farce today with the company announcing a share buy-back scheme five months to the day after the company was floated, Green Party Co-leader Metiria Turei said today.
The Mighty River Power share buy-back will see over 3% of the privately-held shares bought back by the company. The company’s shares are trading today at 12% below their listing price.
“John Key’s asset sales have descended from failure to farce today. Just five months after National sold these shares, promising a golden opportunity for so-called ‘mum and dad’ investors, Mighty River is buying them back at a loss for investors,” said Mrs Turei.
“Next month, Kiwis will have the chance to vote ‘no’ to John Key’s failed asset sales in the coming referendum. This latest farce highlights why Kiwis are so strongly opposed to asset sales.
“This desperate move just proves that no-one is winning from the asset sales. The taxpayer has forked out over $124 million so far for the cost of the sales process, the Crown got less than forecast for the shares it sold, while retail investors who listened to Mr Key and put their savings in Mighty River have lost 12% of their investment.
“This buy-back looks like an attempt to prop up Mighty River’s share price ahead of the Meridian sale. There clearly isn’t a market for the government’s share sales. It should cancel the remaining asset sales now.
“Mighty River’s move also highlights the excessive profits in the electricity sector. If Mighty River Power has $50 million laying around, its priority should be cutting electricity prices for families and businesses. The Greens’ NZ Power plan will put an end to the power companies’ excessive profits,” said Mrs Turei.
—
