New Zealand could sell part of its 75% stake in Air New Zealand, although it intends to remain the majority shareholder.
The proposition was announced in a speech yesterday by Prime Minister John Key about the government's need to balance its budget. He said the government is looking at divesting stakes in several power companies, and "advice has also been sought on reducing the Crown's shareholding in Air New Zealand, while still maintaining a majority stake."
Under any divestiture, he added, New Zealand investors would be first in line for shares of the Star Alliance carrier, and "the government would need to be confident of widespread and substantial New Zealand share ownership."
Currently, 25% of the carrier's shares in public hands.
"Majority government ownership means that control will always rest in New Zealand hands," he says. "If companies were listed on the New Zealand Stock Exchange, then private New Zealand owners would be able to sell and foreign investors could buy."
He added that past experience with state share sales suggests most investors would be New Zealanders, making foreign ownership limited.
An ANZ spokeswoman had this to say about the prime minister's comments: "A change in the government's shareholding while retaining a majority stake would have no influence on Air New Zealand's business but would provide greater market liquidity for shareholders."
Source: Air Transport Intelligence news
