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Income from State Asset Sales as at 30 September 1999

Published 30 Sep 1999

Historical information on the sale price and background to New Zealand Government asset sales as at 30 September 1999.

Note: This information was published in 1999 and has not been updated since that time.

Business Sale Price
($ million)
Settlement
Date
Purchaser Notes
New Zealand Steel 327.224 22.03.88 Equiticorp
Petrocorp 801.059 31.03.88 Rossport Investments Ltd
Health Computing Service 4.250 07.11.88 Paxus Information Services
DFC 111.280 18.11.88 National Provident Fund (80%) & Salomon Brothers (20%)
Post Office Bank 665.400 28.02.89 Australia and New Zealand Banking Group Limited
  13.078 31.10.89
Shipping Corporation 18.500 03.04.89 ACT (NZ) Limited
  15.059 19.03.90
  -1.825 12.10.93 [1]
    23.12.93
Air New Zealand 660.000 17.04.89 [2]
Landcorp Financial Instruments 15.740 20.03.89 Mortgagors
  34.260 05.10.89 Mortgagors
  27.000 05.02.90 Mortgagors
Rural Bank
- Clawback
550.000 31.10.89 Magneton Holdings Limited
  137.500 30.09.92 [3]
Government Printing Office 20.000 1989/90 Various [4a]
  18.156 1990/91 Rank Group [4b]
  0.425 31.03.93 Rank Group [4b]
National Film Unit 1.500 23.03.90 TVNZ
  1.000 21.09.90
Communicate NZ 0.064 08.12.90 DAC Group Limited
State Insurance Office 735.000 28.06.90 Norwich Union
Tourist Hotel Corporation (THC of NZ Ltd) 71.850 15.06.90 Southern Pacific Hotel Corporation NZ Ltd [5]
New Zealand Liquid Fuel Investment Ltd -203.000 06.07.90 Fletcher Challenge Canadian Investments Ltd
Maui Gas 240.000 06.07.90 Generate Development Ltd [6]
  14.000 06.07.90 Benhar Holding Ltd [6]
Synfuels Stocks & Current Assets 29.158 06.07.90 Fletcher Challenge Ltd
- Clawbacks 1991/92 91.847 Fletcher Challenge Ltd [7]
1992/93 45.571
1993/94 35.262
1994/95 2.096
1995/96 2.120
Telecom 4,250.000 12.09.90 [8] [9]
Forestry Cutting Rights 102.000 24.07.90 Ernslaw One Ltd [10]
  262.000 24.07.90 Fletcher Challenge Ltd [10]
  382.900 30.08.90 Carter Holt Harvey [10]
  0.305 30.08.90 Consortium of NZ Investors [10]
  115.000 18.09.90 Wenita Forestry Ltd [10]
  40.550 19.09.90 Juken Nissho [10]
  26.800 19.09.90 Baigents/Shell (NZ) Ltd [10]
  0.150 19.09.90 Golden Bay Forest [10]
  41.500 19.09.90 Juken Nissho Ltd [10]
  43.500 24.10.90 Juken Nissho Ltd [10]
  0.350 26.10.90 Waimea Sawmills [10]
  12.000 26.10.90 Winstones [10]
NZ Timberlands Ltd 366.000 15.05.92 ITT Rayonier [10]
Export Guarantee Office Ltd 17.781 24.06.93 State Insurance Office
  2.000 31.08.94
  0.500 20/12/96
Government Supply Brokerage Corporation (NZ) Ltd 3.200 30.01.92 Professional Services Ltd
Housing Corporation Mortgages 29.684 25.11.91 TSB Bank Limited
  420.352 27.07.92 Postbank/Mortgage Corp
  46.000 28.09.92
  12.877 Oct - Nov 92
  7.929 Feb-93 TSB Bank
  7.137 09.03.93 Tower Corp
  99.465 29.03.93 Postbank/Mortgage Corp
  280.584 29.03.93 Mortgage Corp
  34.000 30.01.95 Ichthus
  4.000 29.02.95 ANZ Banking Group
  10.900 30.03.95 ANZ Banking Group
  185.500 30.4.95 ANZ Banking Group
  45.100 30.5.95 Countrywide Bank
  44.500 01.07.95 ANZ Banking Group
  80.000 11.09.95 ANZ Banking Group
  8.200 18.09.95 Countrywide Bank
  183.100 30.01.96 Countrywide Bank
  18.100 25.03.96 Countrywide Bank
  5.900 03.05.96 ANZ Banking Group
  3.500 06.05.96 Countrywide
  30.100 27.05.96 IHC
  74.100 17.06.96 ANZ Banking Group
  521.700 24.06.96 Westpac
  5.900 28.07.96 ANZ Banking Group
  17.300 23.09.96 ANZ Banking Group
  177.400 21.09.98 WestpacTrust
  61.100 22.1.99 WestpacTrust
Taranaki Petroleum Mining Licences 118.840 06.04.92 Petrocorp/Southern Petroleum [11]
- Clawback 1992/93 2.296 31.08.92 Nomeco  
  01.03.93 Bligh Carpentaria  
Bank of New Zealand 849.946 09.11.92 National Australia Bank [12]
New Zealand Rail 328.191 30.09.93 Wisconsin Central, Berkshire Partners, III L.P., Fay Richwhite [13], [14]
Wrightsons Rights 3.449 25.11.93 Domestic and International Institutions
Fletcher Challenge Limited Ordinary Division and Forest Division Shares 418.059 23.12.93 Domestic and International Institutions
GCS Limited 46.991 18.11.94 EDS Holdings (NZ) Limited
Waikato Regional Airport Limited 2.125 29.3.96 Hamilton City Council, Matamata/Piako District Council, Otorohanga District Council, Waikato District Council, and Waipa District Council
Oamaru Airport 0.040 30.06.96 Waitaki District Council
Te Kuiti Airport nominal 30.09.96 Waitomo District Council
Timaru Airport nominal 1.05.97 Timaru District Council
Masterton Airport nominal 1/05/98 Masterton District Council
Tauranga Airport 1.061 1/05/98 Tauranga District Council
Hokitika Airport nominal 1/07/98 Westland District Council
Rotorua Regional Airport Limited & Palmerston North Airport Limited 2.500 1/02/99 Central Avion Holdings Limited
Auckland International Airport Limited (incl a special dividend of $69.66ml) 459.832 28/07/98 Public Share Float
Wellington international Airport Limited 96.380 14/08/98 Consortium led by Infratil NZ Ltd [15]
Māori Development Corporation 20.930 17.6.96 Māori Development Corporation
The Radio Company Limited 89.000 10.7.96 New Zealand Radio Network Limited
Forestry Corporation of New Zealand Ltd 1,600.000 27.9.96 Fletcher Challenge Forests (37.5%), Brierley Investments Ltd (25%) and Citifor Inc (37.5%) [16]
Works and Development Services Corporation (NZ) Limited 108.000 8.11.96 Civil Construction to Downer and Co Ltd, and Consultancy Services to Kinta Kellas PLC [17]
Capital Properties New Zealand Limited (CPNZ) First instalment 59.700 27.11.98 Public Share Float
Contact Energy Limited - 40% cornerstone 1,208.000 14.5.99 Edison Mission Taupo Limited
Contact Energy Limited - 60% float 1,123.000 14.5.99 Public Share Float
VTNZ 19.200 21.9.99 Motor Trade Association Investments Limited

Total

19,122.078 [18]

Notes

  • [1] The Crown paid a total $1.825 million to SCNZ over 1993 to finalise the Conference Pool Accounts.
  • [2] Air New Zealand's initial ownership after sale was:
    BIL 65%
    Qantas 19.9%
    Japan Air Lines Limited 7.5%
    American Airlines Limited 7.5%

    30% of BIL's holding is now held by the public and Air New Zealand staff.
  • [3] The Crown received a further $137.5 million on 30 September 1992 from a clawback on the Rural Bank's surplus loan loss provisions.
  • [4a] From sale of sundry assets, including its main building in Mulgrave Street.
  • [4b] Part proceeds of sale of the business - $0.425 million was received on 31 March 1993.
  • [5] The Sale and Purchase Agreement referred to a sales price of $73.85 million, however, the resolution of the settlement accounts have resulted in the Crown receiving $2 million less. Prior to the sale and as a condition of the sale, the Crown assumed THC's term liabilities which had a book value of about $73 million at the time.
  • [6] In addition to the Maui Gas sale proceeds, the Government receives profits under the Electricorp gas contract:
    1991/92 34.3 million
    1992/93 51.0 million
    1993/94 34.2 million
    1994/95 37.5 million
    1995/96 38.6 million
    1996/97 38.9 million
    1997/98 39.5 million
    1998/99 39.1 million
  • [7] There are two clawbacks included in the synfuels sale: gasoline price clawback and withholding tax clawback. The net total of NZLFI, Maui and Synfuels is $257.054 million.
  • [8] Payment was made in lump sum payments of US$ and NZ$ on 12 September 1990 and six monthly installments of NZ$ commencing on that date, to avoid disruption to financial markets. The US$ portion has not been converted to NZ$ as it is being used to offset US$ debt. The NZ$ installments include interest to compensate for deferred payment. The value of the proceeds for debt reduction equates to NZ$4.25 billion.
  • [9] Initial sale of 100% to American Information Technologies Corporation (Ameritech) and Bell Atlantic Corporation, with a requirement to on-sell shares over three years.
  • [10a] Contracted sale price.
  • [10b] Signing date. Payment terms vary. $1,027 million was received in 1990/91 fiscal year.
  • [11] The Crown has a clawback arrangement whereby the joint venture pays further money to the Crown should oil prices be above benchmark levels or if reserves be above the present midpoint reserve estimate. The Crown does not pay the joint venture if prices or volumes are less than forecast. The Crown received $2.296 million in the 1992/93 financial year and zero in the 1993/94, 1994/95, 1995/96 and 1996/97, 1997/98 financial years.
  • [12] In addition to the amount received for its BNZ shares, the Government received from BNZ an amount of $36.966 million on the unwinding of Adbro Investments Limited (the company established in 1990 to participate in the BNZ's non-performing loans). The Crown has a facility to receive a share of excess Adbro recoveries. Recoveries to date have totalled $29.233 million.
  • [13] The announced sale price of $400 million was the 'enterprise value' of the business. This is the going concern value Wisconsin placed on the business. Once the debt of NZ Rail is deducted from the enterprise value, the final sale proceeds to the Crown are $328.191 million.
  • [14] The Government announced the sale of NZ Rail on 20 July 1993. The settlement period was set at a maximum of 90 days. Wisconsin elected to settle the transaction early by paying the balance of the purchase price on 30 September 1993.
  • [15] NZAL is a consortium controlled by Infratil NZ Ltd. The shares in the consortium at purchase were Infratil NZ Ltd (40%); Foreign Colonial Special Utilities Investment Trust (20%) and Alliance Life Common Fund (40%).
  • [16] The sale proceeds for the Crown's shares in FCNZ were US$1,091.889 million. This equates to $1,600 million based on the exchange rate of 5 August 1996 when the price for the transaction was agreed by Cabinet. Settlement of the $US amount took place on 27 September 1996.
  • [17] Settlement for Works Civil Construction took place on 24 September 1996. Settlement for Works Consultancy Services took place on 8 November 1996.
  • [18a] The total records revenue received from asset sales. The Crown continues to deal with some residual liabilities from the time when assets were owned by the Crown.
  • [18b] This total includes the income from the clawbacks on the sale of Synfuels and the Petroleum Mining Licenses.
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