NZ investors looking for good opportunities

Press Release – University of Canterbury

The huge interest today in the sale of Mighty River Power shares demonstrates there are plenty of New Zealand investors looking for good opportunities, a University of Canterbury (UC) political scientist said today.NZ investors looking for good opportunities, UC political scientist says

March 6, 2013

The huge interest today in the sale of Mighty River Power shares demonstrates there are plenty of New Zealand investors looking for good opportunities, a University of Canterbury (UC) political scientist said today.

One hundred thousand people have pre-registered for a stake in Mighty River Power. Up to five would-be investors per second were signing up online on the share sale website to learn more about Mighty River Power’s share sale. Reportedly, interest in the share sale compares with interest in the Contact Energy share offer in 1999.

UC Professor Alex Tan said with relatively low term deposit interest rates, investors were looking for other ways to make money.

“As open as our economy is, foreign ownership of Mighty River Power is of course always possible. There is only so much money available in New Zealand for investment and, when you compare it with institutional investors overseas, the amount of cash available here is small.

“But does it necessarily mean that foreign ownership is bad? Does it always mean local ownership is always good? We only need to take a look at the finance companies that are locally owned that went under and lost the money of many local investors and pensioners.

“There will always be an economic nationalist argument that will always rile the citizens up and it can be used for political gains by politicians of any ideological stripe. But economic nationalism may limit the wealth creation domestically.

“There is certainly existing empirical evidence if you observe comparative across a broad spectrum of countries for these observations,” Professor Tan said.

ENDS

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3 comments:

  1. Lan, 6. March 2013, 20:06

    The sale of UK Corporation Thames Water to private equity is a likely end model for Mighty River Power. All the NZ power consumer will get is a loss of control over water resources (and quality) and ever increasing power prices. A shift to solar is the logical outcome with households making money from excess supply by feeding back into the grid. In the long run, if the float fails, the environmental outcomes could benefit NZ “going forward” as they say….methinks many of those registering interest in this possible purchase transaction will not become share customers as the issues unfold.

     
  2. Lan, 6. March 2013, 22:14

    See
    “Thames Water – a private equity plaything that takes us for fools”.

    Guardian – Comment Is Free -Will Hutton

    Subtitle:

    “When the water company was privatised we were promised a utopia of private sector efficiency”

    What happend is maximum private gain and public pain “marshalled by Australian bank Macquarie” ..”the bank that makes Mitt Romney’s Bain Capital look saintly”..

    worth reading for a glimpse of the future of NZ power companies going “private”…silly Kiwis once again, trusting and best kept in dark places.

     
  3. Lan, 17. March 2013, 22:23

    Sunday Star Times Mar 17th Business News says “Investors have started meeting with analysts from Macquarie, Goldman Sachs and Credit Suisse/First NZ ahead of the book-build and Mighty River’s psospectus. Australian investors are already looking at Mighty River’s governance structure.”..and appear to be casting negative aspersions on Chairwoman Joan Rivers as a former director of Feltex Carpets …Thames Water scenario coming our way?