Wednesday, May 28, 2014

Who benefits from privatization?


Goldman Sachs New Zealand Holdings, the local unit of the Wall Street investment bank, posted a 63 per cent per cent jump in revenue in 2013, a boom year for market activity that saw it win a share of deals including the floats of Z Energy, Meridian Energy and Synlait Milk, Tower's asset sales, Harvard University's forest sale and the selldown of Air New Zealand.


It was one of the lead managers in Meridian Energy's IPO, which will net $1.88 billion for the government once the second installment is paid in 2015, and helped manage the government's selldown of its holding in Air New Zealand to 53 per cent from 73 per cent, raising $365 million. The Treasury also hired Goldman Sachs to assess Kiwibank's capital needs early in 2013.

And meanwhile, the public gets robbed. Just another example of how National helps out its mates while screwing over ordinary people.