Income from State Asset Sales as at May 2014

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 proceeds 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.
• [19] The Crown sold 49% of the shares in Mighty River Power via a public share offer (including loyalty bonus shares to be transferred to eligible investors in May 2015)
• [20] The Crown sold 49% of the shares in Meridian Energy via a public share offer. The proceeds were payable in two instalments; the first instalment of $1,255.87 million was received in October 2013 and the second instalment of $627.94 million is due in May 2015
• [21] The Crown sold approximately 20% of the shares in Air New Zealand via an off-market sale to New Zealand sharebrokers (to on-sell to their clients) and to New Zealand and some offshore institutions. The transaction reduced the Crown's ownership of Air New Zealand from approximately 73% to approximately 53%
• [22] The Crown sold 49% of the shares in Genesis Energy via a public share offer (including loyalty bonus shares to be transferred to eligible investors in April 2015)