Court clears path for partial privatization of Mighty River Power
Exterior of 100MW geothermal power plant of Mighty River Power at Kawerau, New Zealand (source: Wikimedia/ creative commons)
Alexander Richter
27 Feb 2013
The highest court in New Zealand dismisses claims by indigenous people and clears path for the planned partial privatization of state owned power company Mighty River Power.
The highest court in New Zealand has ruled that the first partial sale of the state power company, Mighty River Power, can proceed.
The bid by indigenous people to delay any offer until water ownership claims were settled were dismissed by the court. “It is difficult to see how privatisation will make a material difference to the ultimate outcome,” the court said in a unanimous judgment.
The privatization of Mighty River Power is part of a larger privatization effort by the New Zealand government, including three power companies and the national airline.
In the planned IPO, it will be ensured that New Zealanders get a preference in share sales and limites the size of individual holdings.
Source: Reuters
