UPDATE 2-New Zealand eyes Chorus securities sale to fund projects

(Adds detail about lack of valuation in paragraph 4, government securities in paragraph 10) By Lucy Craymer WELLINGTON, Oct 10 (Reuters) – The New Zealand government said on Friday it was considering divesting its securities in telecommunications infrastructure provider Chorus as it looks for ways to raise equity for other infrastructure projects. The securities, both debt and equity, were purchased by the government as part of its commitment to roll out ultra-fast broadband in 2011, and that was completed in 2022. The government said it was looking at the feasibility of selling these to private investors in early 2026 and it expected to make a final decision before the end of the year. It did not provide a valuation for the securities or details of expected sale proceeds. Finance Minister Nicola Willis said in a statement that with the ultra-fast broadband project completed, there was no longer a reason for the government to own these securities. “The Government is continuously identifying opportunities to support its fiscal strategy and to drive economic growth. Early monetisation of NIFFCo’s Chorus securities is one opportunity that is worth exploring," Willis said in a statement. New Zealand's economy has contracted in three of the last five quarters, and business confidence is worsening and households are in a depressed mood as they fret about the rising cost of living and scarcity of jobs. This has taken a toll on the popularity of both the New Zealand government and its Prime Minister Christopher Luxon. The Taxpayers' Union-Curia Poll released on Wednesday found that the current government would not have enough seats to govern if an election was held today. While the government is firm on its need to reduce debt, it is looking for ways to stimulate the economy. Willis said a possible divestment of Chorus securities would allow it to redirect the money into capital projects of more use to New Zealanders. The government does not own ordinary shares in Chorus, but holds a different class of equity that does not provide voting rights. Chorus said it would monitor the sales process and it did not expect any major changes to the terms of the securities if they were sold to another party. (Reporting by Lucy Craymer in Wellington and Roshan Thomas in Bengaluru; Editing by Shailesh Kuber, Marguerita Choy and Jamie Freed)

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