New Zealand’s Meridian Energy will list on the Australian stock exchange as the NZ government sells its 49 per cent stake in the nation’s top energy provider, according to The Australian Financial Review.
Currently, the company generates around one third of the country’s power. In October, independent research company Edison Investment Research valued Meridian Energy shares at $1.70 to $1.86 – higher than the New Zealand government’s valuation – which values the company at NZ$3.2 billion [approximately AUD$2.81 billion].
Meridian Energy currently owns and operates seven hydroelectric power stations and one wind farm in the South Island of New Zealand, three wind farms in the North Island and one wind farm in South Australia.
The stock will be dual-listed on the
Edison Investment Research said Meridian Energy has the capacity to pay dividends, “significantly more than net earnings,” annually for the foreseeable future, as reported by Energy Business News.
The November initial public offering will be New Zealand’s biggest privatisation and sharemarket float.