Media release, 19 May 2011
Statement made by Troy Newton, Partner, KPMG
We welcome the Government’s move to implement a mixed ownership model for selected State owned Enterprises and Air New Zealand, but careful planning will be required. In particular, Treasury officials will need to plot a path through the various risks and barriers to success such as water allocation and Treaty settlements.
The potential scale of the IPOs over three to five years means that officials will also need to plan and stage the sell down process carefully to ensure other participants’ requirements of local capital markets remain achievable.
Managed appropriately, the mixed ownership model should be good for New Zealand and our capital markets. The devil is in the detail. Until that detail is available, next year by all accounts, businesses must adopt a wait and see approach before making a judgement on the merits.