Genesis Energy

Genesis sale no longer a political hot potato

Remember asset sales? ?Remember how the Green-led Labour movement wanted your signatures for a referendum? ?Remember how this was all going to end in tears?

With Genesis’ share sales starting today, you would be excused for wondering why this sale isn’t being opposed.

Analysts are picking demand will be high for shares in the country?s biggest electricity retailer, Genesis Energy, when its public offer opens today.

The price for shares in the state-owned energy company was announced at $1.55 last night after a bookbuild with institutional investors. The sale would raise up to $736 million for the Crown.

Finance Minister Bill English said already $620 million had been committed through the bookbuild, which was the first stage of the share offer.

At that price the shares will yield a gross dividend of 14.3 per cent, he said.

State-Owned Assets Minister Tony Ryall said the sale would take them to within the Treasury’s target range for the asset sales, with the sale of all four assets earning $4.7 billion, he said.

I’m sure it has nothing to do with the fact we are close to an election, and the Greens and Labour know the voters are sick and tired of two decades worth of manufactured asset sale outrage. ? Read more »

Labour and Greens keeping power policy details secret

Labour and the Greens want you to trust them to run the country.

They want you to believe the brochures, the tweets, the Facebook messages and policy headlines but they don’t want you to know the precise details of their doomed to fail power policy.

Investors wanting more certainty around Labour-Greens policy for overhauling the electricity sector before the election appear to be out of luck.

The parties released plans for radically restructuring the industry shortly before the float of Mighty River Power in May last year and their policy has hung over the partial privatisation programme since.

At an energy industry conference yesterday the architects of the policy, Labour finance spokesman David Parker and Greens co-leader Russel Norman, restated the broad principles of the NZ Power plans.

“We don’t plan to release much further detail before the election,” said Norman after a panel discussion at the Downstream conference in Auckland.

“We’ve released a lot more detail than the National Party did before the Bradford reforms.”

In government the parties would be in a much better position to develop policy using the bureaucracy at their disposal, Norman said.? Read more »

Kiwibank dragging down NZ Post

Kiwibank is dragging down NZ Post and Labour’s plans are to lumber it with a budget and likely to fail insurance company as well. Brian Gaynor at the Herald looks at the parlous state of NZ Post

Why does New Zealand Post continue to flounder while Deutsche Post, the German postal provider, has significantly outperformed the Frankfurt sharemarket in recent years and Royal Mail, the UK mail operator, has just had an extremely successful IPO?

A brief assessment of the three post providers shows that the two European companies have clear e-commerce driven parcel and logistics growth strategies whereas New Zealand Post has been adversely affected by the requirement to contribute substantial capital to Kiwibank, its 100 per cent owned subsidiary.

Around the world postal services are adapting and changing to the new global environment and some very successfully including Deutsche Post and Royal Mil, both successfully listed on the stock exchange and piling on the growth rapidly. Meanwhile in New Zealand.

No one would argue against the importance of parcels but what investments has NZ Post made in this area? What has it done to capture the e-commerce trade?

For example, parcels were mentioned only thirteen times in the group’s 2011 annual report whereas Kiwibank was referred to 197 times.

One of the problems with NZ Post is that Kiwibank is soaking up most of the group’s surplus cash and seems to be squeezing out the traditional postal services. ? Read more »

Editorials on Air New Zealand sell down

The NZ Herald and Dompost editorials put a few things into perspective regarding the government sell down of Air New Zealand.

First up the Herald editorial:

According to the Labour Party leader, David Cunliffe, the timing of the Government’s selldown of shares in Air New Zealand is arrogant. Describing it as astute would have been far closer to the mark. Shares in the airline have been trading at a five-year high and investment advisers have voiced their enthusiasm for them. What better time could there be for the Government to reduce its holding in the national carrier from 73 per cent to 53 per cent?

The selldown has been criticised because it is being done just before a referendum on the part-sale of state assets. That complaint is misplaced. The focus of the Government’s mixed-ownership model strategy and, therefore, the referendum has always been the part-sale of the state’s three power companies, not an airline that the government acquired essentially by accident. Air New Zealand is very much an ancillary part of that strategy. After the disappointments of the Mighty River and Meridian part-floats, it may, however, produce the best result. The $350 million to $400 million that the Government will gain from Air New Zealand will go some way to alleviating the power companies’ shortfalls.? Read more »

Smart play by National on asset sales referendum

National has outfoxed the Greens and Labour with the asset sales timeline. John Armstrong at the Herald explains:

Unlucky for some? Maybe. But National clearly does not think it is in danger. Its version of?Friday the 13th?is designed to be a horror story for its opponents.

In choosing Friday, December 13 as the day the result of the citizens-initiated referendum on asset sales will be announced, National is intent on burying this political nuisance along with its promoters, rather than being buried by it.

The target time for release of the preliminary result of the three-week-long postal ballot is 8.30pm that evening. That will be far too late for the early evening television news bulletins. The result will thus be revealed at what is the deadest time of the political week. By the following Monday, the outcome will be old news.? Read more »

Caption Contest: Pork Chop with Gok Wan

Pork Chop is a fatty

Ok here is a rare photo of Pork Chop (she must have fallen out with Noz) with Gok Wan.

In the unlikely event you are confused Pork Chop is the lump of lard on the right.

Can you believe she is putting about that she is checking in for brain tumour op at Christmas when we all know it is really for a stomach stapling and lipo?

Really she is saying that?

Anyway fill ya boots in the comments for a caption contest.

GW: So like, you know I wear black because it makes me look thin, what about you daaaaarhling?

OMG! I can’t believe I am sitting here talking with a chink Grace Jones while the buffet is disapearing before my eyes.

PC: I never heard of Gok Wan before, is there meat in that, you know like a pie?