Coalcorp price a ‘modest’ $100M

Press, 21 July 1988, Page 3

Coalcorp price a ‘modest’ $100M

Political reporter A price of more than $lOO million is expected for Coalcorp, more than 20 possible purchasers expressing interest, said the Minister for State-Owned Enterprises, Mr Prebble, yesterday. He was commenting after. Coalcorp’s annual report and statement of corporate intent were tabled in. Parliament. Coalcorp has returned a profit of $3.9 million, paid $3.3 million in tax and $1.5 million in dividends. The previous year, before corporatisation, it had shown a $76 million loss, and had made a profit only once in the last 20 years. “The Coal Corporation has recorded one of the most amazing turnrounds in New Zealand’s history,” said Mr Prebble. He said that even with Coalcorp now making a profit and paying a dividend, this would be nowhere near the level of money the Government would need to invest if it retained ownership. The Treasury estimates that selling Coalcorp would produce at least twice as much revenue as retaining it under Government control. Mr , Prebble said a modest assumption of the purchase price was $lOO million. Coalcorp’s statement of corporate intent, required under S.O.E. law, commits it to providing customers with reliable service and quality products at the best price.