Government Offers Bonus Shares of SOEs

July 23, 2012 New Zealand Finance

John Key Announces Bonus Share IssueNew Zealanders participating in the purchase of shares of state assets will be offered bonuses for not selling their shares.

On July 22nd, while speaking at the National Party Conference in Auckland the Prime Minister of New Zealand John Key revealed more details of the government’s asset sale plan, saying that all individuals who buy shares will be offered a loyalty bonus for not selling their shares shortly after purchase.

According to the Prime Minister, the government will sell shares of the energy producer Mighty River Power as early as September this year. He said that applicants for the initial offer can be guaranteed a minimum purchase of NZD 2000, with NZD 1000 for the smallest parcel of shares.

John Key added that in an effort to ensure that investors do not sell their shares shortly after the initial purchase, the government would offer a loyalty bonus to all New Zealand shareholders. Currently, it is planned that the government will issue bonus shares to all shareholders who keep the stocks for at least 3 years.

The Prime Minister also revealed that the government would work with the share broking industry to create new programs and information campaigns targeted at first time buyers of shares,in an effort to increase the number of New Zealanders invest into the state assets.

Photo by nznationalparty