Would Labour stop Trademe listing?

Labour has been running the meme that asset sales are bad. They run all sorts of lines about loss of control, evil foreign investors and loss of dividends, but then along comes Sam Morgan and Fairfax and cacks all over their arguments.

You see Fairfax is going to list 35 percent of Trademe.

If Labour’s spin were correct then the Fairfax board must have rocks in their heads. Surely they aren’t going to allow the family silver to be hocked off to foreign owners?

Our capital markets are thin. Very thin. Right now our Kiwisaver accounts and the Super fund have precious little to invest in in our capital markets. So what do they do? They invest in other countries capital markets. If foreign owners are evil then our very own Kiwisaver accounts and New Zealand’s own Super Fund are the ultimate in corporate evil.

By adding Trademe to the capital markets it will improve the situation somewhat. Fairfax of course still retains the controlling stake but they get a large chunk of capital from investors with which to expand the company.

New Zealand needs to rid itself of the rubbish that Labour peddles and get on with expanding our own capital markets instead of expanding other countries capital markets via our super funds.

 


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  • Well said Cam. My Kiwisaver account is going to be a big part of my retirement security, and I want my fund managers to have some good, solid New Zealand businesses to invest in. Trade Me fits the bill nicely, as do the energy SOE’s. Labour’s presumption that shares will quickly find their way into the hands of overseas investors is flawed, and is solely based on WRP-like political rhetoric.

  • peterwn

    It is interesting that even in USA, various interests want Google regulated on the basis that it has a virtual monopoly in the search engine business. It has this ‘monopoly’ because it has the best ‘mousetrap’ on the block rather than having any ‘natural’ monopoly like a power distribution company.

    The big gripe is that firms who succeed in getting a high Google search ranking usually through manipulation, and hence have high sales, get very annoyed when Google improves its algorithms to stop such manipulative behaviour.

    Similar applies to Trademe.

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