NZ government explores selling stake in telecom Chorus
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The news: The New Zealand government is exploring ways to free up capital locked in its investment in dual-listed telecoms company Chorus.
The context: The government has asked its infrastructure finance body National Infrastructure Funding and Financing (NIFFCo) to investigate the feasibility of selling the securities it holds in Wellington-based Chorus.
The debt and equity securities were purchased by the government as part of its ultra-fast broadband initiative, a national fibre broadband rollout which was completed in 2022.
Minister of Finance Nicola Willis said that there is no longer a policy reason for the government to own the Chorus securities now the project has completed.
Infrastructure Minister Chris Bishop said he has asked NIFFCo to explore the feasibility of selling the securities to private investors in early 2026, rather than waiting another five to ten years for the securities to mature.
Chorus told investors this morning that it will monitor NIFFCo's process.
What they said: "If that process results in any disposal of the securities to a third party we do not anticipate any material change to the terms and conditions on which those securities were issued," Chorus said.
"Most New Zealanders were probably not aware the Government owns this investment in Chorus, nor feels any particular benefit from it," Willis said.
"That’s why it is sensible and prudent to consider the feasibility of divestment to redirect the Government’s capital stored in Chorus into investments that New Zealanders can benefit from."
The sources: ASX, New Zealand government release
