NZ FinMin expects reduced asset sale proceeds
WELLINGTON, Sept 20
WELLINGTON, Sept 20 (Reuters) - New Zealand's finance minister said on Friday the government expects the proceeds from its sale of state assets will be around NZ$5 billion ($4.2 billion), less than earlier estimates because of lower asset valuations and business factors.
Bill English said he expected that proceeds from the sale of minority stakes in three power companies, a coal miner, and the national airline would be at the lower end of its hoped-for NZ$5 billion to NZ$7 billion ($4.2 billion-$5.9 billion).
The comments came at the publication of offer documents to sell up to 49 percent of power company Meridian Ltd, which is expected to raise about NZ$2 billion compared with expectations of about NZ$3 billion based on valuations two years ago.
The government plans to sell a minority stake in a third power company, Genesis Energy Ltd, in the first half of next year.
English said problems with the coal miner Solid Energy, which has had to sack hundreds of workers and close mines to curb large losses, were also a factor in the lower total.
($1 = 1.1928 New Zealand dollars) (Reporting by Gyles Beckford; Editing by Paul Tait)
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