For background to asset sales, listen to January 30th 2011.
At the National Party annual conference in Auckland today, the Prime Minister, John Key, gave more details of the asset sales. The minimum sale will be a $1000 parcel of shares and all New Zealand individuals who want shares will be guaranteed up to $2000 worth of shares. Big institutional buyers will have to wait to see if there are any shares left. John Key thinks that 85 to 90% of the buyers will be New Zealand individuals.
Many New Zealanders are worried that Kiwis will sell to overseas buyers; however, John Key said that there will be bonus shares for Kiwis who keep the shares for three years. They will get extra shares.
The first asset for sale will be Mighty River Power, probably in September. However, if Maori take the government to court over water rights, this could delay asset sales.
Vocabulary
• minimum – lowest number
• parcel of shares – number of shares
• institutional buyers – like insurance companies or banks
• delay – have to wait longer