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Thread: Investors for NZ Gov't Asset Sale ?

  1. #1
    Join Date
    Jan 2007
    Location
    Chch, NZ
    Posts
    2,226

    Default Investors for NZ Gov't Asset Sale ?

    For several months the NZ gov't has been pushing for a partial asset sale of their key state run companies. Being in Canada at the moment, i've not had 1st hand of the overall response, other than there's some local protest against the asset sales. It appears that the sales will go through:

    http://www.stuff.co.nz/national/poli...ssed-by-1-vote

    More information from the NZ gov't is shown here (FAQ etc.)

    https://www.governmentshareoffers.govt.nz/

    My question is, are there any members here interested in participating with the IPO or quite simply, fully against such sale? I'm not looking at debating the merits of the sale that will turn this thread into a political debate (as it's against posting rules to voice personal preferences of political parties, etc.). I just would like to hear some insight from an investment point of view (say if others know some information of the said companies to be partially privatised).

  2. #2
    Join Date
    Feb 2008
    Location
    Auckland from Sheffield
    Posts
    411

    Default

    I won't espouse my political views, but personally I'm fully against the asset sales. Seems madness to sell them, when the current returns from them, are going to be way better than proceeds from the sales and the missing yearly dividend, especially given the govts cost of borrowing.

    That said, I'm not going to cut off my nose to spite my face, I'll look at each on it's merits, as it seems there will be some bribes with the first one to hang onto any shares, I'll probably end getting some. Just much rather there wasn't any sales.

  3. #3
    Join Date
    Jan 2007
    Location
    Chch, NZ
    Posts
    2,226

    Default

    I can see your view (and the views of many protesters against the sale). However I put to 1 very important question that is quite universal all around the world. Can it be shown that gov'ts are more efficient and better at spending such dividend/revenues than the private counterpart to achieve the same level of service or outcome? After all there is a reason why Greece and Spain are having troubles (a 1$ spent by the gov't yields less than a $1 spent in the private system).

    A lot of hurt has happened to small investors in NZ in recent years from various failed ventures of the likes of Hanover Finance and Bluechip investors. Should only the gov't hold the best assets for themselves to use or share a bit of the profit with the people of the country? Or is it that the people of NZ only choice for investment is term deposits and rental properties?

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