MRP shares didn’t go to mum and dad investors

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TW.com Eds: keep in mind that several Iwi Trusts will have purchased shares.

(TV3) Government claims that “mum and dad investors” bought the Mighty River Power shares are a myth, the Greens say.

The party has produced figures, which it says have been confirmed by the Treasury, showing half the shares went to just 13,000 people and 10 percent were bought by 400 wealthy people.

“The sale of Mighty River Power saw 113,000 retail investors, referred to as `mum and dad investors’ by the Government, buy 26.9 percent of the company,” co-leader Russel Norman said today.

He says the analysis shows:

Half the shares were bought by fewer than 13,000 people

Those investors bought, on average, shares worth nearly $35,000

A group of fewer than 400 individuals, trusts and organisations bought 10 percent of the shares

Their average investment was nearly $225,000

The remaining 101,000 retail investors bought only 13.4 percent of the company – less than the amount taken by overseas investors.

“National’s myth that it sold Mighty River Power to ordinary New Zealanders has been well and truly busted – the line was a con,” Dr Norman said.

“The truth is that 98 percent of New Zealanders bought no shares at all.”

The Government reaped $1.7 billion from the partial privatisation of the state-owned power company when shares were floated earlier this month.

It plans to sell 49 percent of Meridian Energy before the end of the year.

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