Prime Minister John Key last week announced four Government initiatives that will be implemented to encourage New Zealanders to invest in shares in Mighty River Power Limited to be sold later this year:
- The appointment by Treasury of a retail syndicate of sharebrokers and banks to help potential investors understand how they can participate in the share offer.
- A minimum application for Mighty River Power shares of $1000, to make the shares affordable to a wider range of New Zealanders.
- A guarantee that New Zealanders seeking up to $2000 worth of shares will receive the shares that they apply for and not have their application scaled back (big institutions will not receive guarantees).
- The provision of a loyalty bonus to reward New Zealand investors who keep their Mighty River Power shares for a certain length of time (likely to be around three years).
Further details on the loyalty bonus and other aspects of the Mighty River Power share offer will be announced closer to the time of the proposed sale, which is scheduled to take place in the third quarter of this year.