Asset-sale process could take five years
The listing process for partial sales of the state-owned energy companies could take up to five years given how long it could take the market to absorb first-off-the-rank Mighty River Power's possible $1.5 billion capital raising, says Forsyth Barr head of research Rob Mercer.
Addressing a Forsyth Barr-organised investor seminar in Hamilton yesterday Mercer said no information was available, but given "issues" surfacing around the partial asset sales proposal, November now seemed more likely as a listing date for Mighty River Power than the previously considered late September/October timing.
December would be a "bad" month to list the company, he said.
Mighty River Power could be a $1.5b capital raising and Forsyth Barr valued the company at $3.66b, but no information at all was available on likely pricing, he said.
The company was worth consideration by investors as a long-term strategic asset investment.
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