For pennies on the (worthless fiat) dollar! Just like Royal Mail
A New York bank has emerged as one of the largest shareholders in Meridian Energy.
A disclosure to the NZX today showed The Bank of New York Mellon Corporation owns 102,014,447 Meridian shares, an investment which once fully paid, would cost $153 million.
The shares cost an initial $1, with the remaining 50c a share due in 18 months.
The investment by Bank of New York Mellon represents about 8 per cent of the shares offered as part of the partial privatisation of Meridian.
Including the majority stake retained by the Crown, the US bank owns about 4 per cent of Meridian, New Zealand’s largest electricity generator.
While the investment is large by New Zealand standards, it is just a fraction of 1 per cent of Bank of New York Mellon’s US$1.5 trillion (NZ$1.8t) in assets under management, as at September 30.
No other institutions have revealed whether they own more than 5 per cent of the shares which were offered for sale.
It is unclear whether all of the shares were purchased in the initial public offering – the bank’s disclosure said a purchase of 72,014,447 shares on Tuesday took it over the 5 per cent threshold.
Since listing at $1, Meridian’s instalment receipts have risen as high as $1.10, but are down 1 cent at $1.09 this morning.