28 Aug 2012

Mighty River delay not expected to hit share price

8:01 am on 28 August 2012

Investors say a delay in a float of Mighty River Power until early next year is unlikely to greatly diminish the price the Goverment will get for its shares.

Radio New Zealand's economics correspondent says there is a growing expectation the sale will be delayed.

Devon Funds Management puts the chances of a sale this year at 40%. But investment committee chairman Paul Glass says a delay of a couple of months should not affect the price

He says a lack of new company float means there will still be plenty of investors' money available.

Tower Investments says low interest rates will ensure plenty of demand for the shares in 2013.

Chief executive Sam Stubbs says KiwiSaver fund managers are likely to be big buyers of Mighty River Power.

With money continuing to flow into those funds, he says a delay could even increase demand for the shares.