Mighty River plummets | The Jackal

28 Jun 2013

Mighty River plummets

Today, the Dominion Post reported:

MRP shares fell 0.9 per cent yesterday to $2.24, bucking a 0.5 per cent gain on the benchmark NZX 50 Index.

At this level, the state-controlled power company is trading 4 cents off its all-time low.

That is a notable drop from the $2.73 level seen when the shares made their debut on May 10.

It's also a significant drop from the $2.50 the shares were floated at. At $2.24 each, the 377 million shares bought in the retail offer are now worth $100 million less than investors paid for them back in May this year, and at this rate, Mighty River is unlikely to reach the top 10 index.

So, what has the government got to say about Mighty River Powers falling share price? Nothing!

This is more bad news for National, and more specifically Bill English and State-Owned Enterprises Minister Tony Ryall. Both these idiots had previously claimed that 86.5 percent of the MRP shares issued would be sold to 'mum and dad' investors and 13.5 percent overseas.

Their claims have been proven entirely false, with retail investors gaining only 13.4 percent of the company, which is less than the amount taken by overseas institutions.

It's one thing to lie to the people about who will be benefiting from the partial privatization of state owned assets, but it's another thing entirely when there is no benefit for investors at all.

With MRP shares plummeting, the writing is on the wall for National's plans to partially privatise Meridian Energy, Genesis, and Solid Energy.