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Thread: Meridian Shares

  1. #21

    Default

    Quote Originally Posted by Glenn View Post
    But do not forget they now have to pay another NZ$ 0.50 per share.
    Indeed, that was another part of the deal that made it so good.

    Receive dividends based on the fully paid shares, but only having to front up with partial payment for the first 18 month.

    NZers and foreigners who bought couldn't believe their luck.

  2. #22
    Join Date
    Jun 2004
    Posts
    10,313

    Default

    All investors (overseas and NZ) paid the 1st installment of $1 with the rest (50c) to be paid 5th May.
    There was an upside limit of $1.60 for NZ'ers but in the event the final price was below that anyway.
    At listing 14% of the shares were owned overseas - purchased direct in the float (not via NZ'ers).

    The Govt gave away a lot of our money out of an ideology.

  3. #23

    Default

    Quote Originally Posted by Wayne View Post
    At listing 14% of the shares were owned overseas - purchased direct in the float (not via NZ'ers).
    That was also my understanding Wayne.

    I thought Glenn was wrong trying that as a justification.

  4. #24
    Join Date
    Jun 2004
    Posts
    10,313

    Default

    Quote Originally Posted by speights boy View Post
    That was also my understanding Wayne.

    I thought Glenn was wrong trying that as a justification.
    I had to reread the prospectus and supporting stuff.
    I hope you appreciate I 'took one for the team' there

  5. #25

    Default

    I hope you appreciate I 'took one for the team' there
    I do.
    Yes, I had heard there were people who actually read all that stuff.

    I simply bought to do my bit in helping keep a few more out of foreign hands.
    The fact it turned out to be such a good investment was icing on the cake.

  6. #26

    Default

    Quote Originally Posted by Wayne View Post
    The Govt gave away a lot of our money out of an ideology.
    You're right there Wayne.

    Closed today at 2.045: over 100% gain since they were sold.
    Plus 19c in dividends.

    The fund managers in New York and Hong Kong will be sending their mate John Key a bottle of the good stuff today.

  7. #27

    Default

    So let me see if I have this straight.

    We sell off Meridian, a sizeable chunk of the shares to foreigners.

    Our Super Fund goes into a deal organised by GOLDMAN SACHS !
    A few weeks later the bank collapses.
    Unbelievable.

    NZ Super Fund loses $200m after 'risk free' Portuguese bank collapses
    Almost $200 million of taxpayer money invested through the Kiwi Superannuation Fund has been lost after a Portuguese bank where the money was invested, supposedly as a "risk free" loan, collapsed.
    http://www.nzherald.co.nz/business/n...ectid=11404653

  8. #28
    Join Date
    Mar 2007
    Location
    Auckland
    Posts
    3,000

    Default

    If you are a CEO, getting a utility to double its profit is really easy.

    All you do is clamp down on the maintenance budget.
    Get rid of all those boring greasy guys in stained overalls who travel around checking stuff.
    Fire the lot and those millions of costs that you have saved now go straight on to the bottom line.

    For the next couple of years you then become the gold-plated hero and reap all sorts of lucrative bonuses.

    Of course, you need to quickly capitalize on that great reputation by dashing off to the head-hunters and getting an even better job, hopefully far away on the other side of the world.

    Because by year four or five all that undone maintenance is going to come back and bite, with black-outs and shortages as the reticulation system starts to fall apart through lack of maintenance.

    Anyone remember the Auckland city-wide power failures of the 1990s?

  9. #29

    Default

    If that were ever to be the case again, the foreign fund managers who are allocated cheap shares in some IPO don't care.
    They would have made their huge profits on the back of the NZ taxpayer and sold out.....long gone.
    Potentially leaving Kiwi taxpayers with the problems.
    We don't just get ripped off once, we get ripped off twice.

    We do seem to have a love affair with sending our profits directly offshore for foreigners to benefit from.
    Last edited by speights boy; 20-02-2015 at 07:16 AM.

  10. #30
    Join Date
    Jun 2004
    Posts
    10,313

    Default

    Quote Originally Posted by flyernzl View Post
    If you are a CEO, getting a utility to double its profit is really easy.

    All you do is clamp down on the maintenance budget.
    Get rid of all those boring greasy guys in stained overalls who travel around checking stuff.
    Fire the lot and those millions of costs that you have saved now go straight on to the bottom line.

    For the next couple of years you then become the gold-plated hero and reap all sorts of lucrative bonuses.

    Of course, you need to quickly capitalize on that great reputation by dashing off to the head-hunters and getting an even better job, hopefully far away on the other side of the world.

    Because by year four or five all that undone maintenance is going to come back and bite, with black-outs and shortages as the reticulation system starts to fall apart through lack of maintenance.

    Anyone remember the Auckland city-wide power failures of the 1990s?
    Did they double their profit?
    Because the share price doubled doesn't mean the profit doubled.
    Also there are far easier ways to increase the profit allowed - remember this is a regulated market where they are only allowed to make a 'reasonable' return on capital.
    So you increase the capital (asset value) by revaluing all the assets.

    This is what the State owned generators (Meridian et al) did at the start. The assets were split up and passed across at a certain value (using historic cost I believe).
    They immediately valued at replacement cost and whamo up went the value.
    They then increased the power prices to match.

    The Auckland City power failures weren't due to the generators - I believe they were due to Transpower and Mercury Energy.


 

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