Bay of Plenty Regional Council Toi Moana has today set parameters that will define how some of its shareholding in the Port of Tauranga can be divested.

Last year, the Regional Council agreed to enable a managed sell down of the 54.14 percent shareholding in the Port of Tauranga Limited to a minimum shareholding of 28 percent, subject to additional steps being taken by Council including setting parameters. At its meeting today, the Regional Council agreed on these parameters, providing its investment arm Quayside Holdings (a Council Controlled Organisation), with direction on how to proceed with any share sale.

Regional Council Chair Doug Leeder says deliberations and decisions around the sell down process have been lengthy and considered as Council sought to maximise its objectives from the sell down process and ensure community views were considered.

“Like most people, the Regional Council recognises the Port of Tauranga is a valued strategic regional asset and that is why we will remain a significant cornerstone and strategic shareholder through retaining at least a 28 percent shareholding.”

Mr Leeder says the sell down aims to diversify Quayside’s investment portfolio to reduce risk and deliver greater dividends to the Regional Council.

“Forecasting indicates that Toi Moana may be in a much stronger financial position to support its ratepayers and residents through improved services and the offsetting of general rates, which benefits all Bay of Plenty residents.”

He says the parameters of the share sell down include optimising value to provide higher dividends to the Regional Council, timing any sales with economic conditions, and being strategic in terms of control and diversification.

“The Regional Council has also asked Quayside to provide Mana Whenua with an initial opportunity to purchase shares in the Port. We have undertaken further engagement with Mana Whenua and recognise that they share similar objectives to Toi Moana in wanting to retain long-term local ownership in the Port.”

The Regional Council also wants the Port of Tauranga’s operations to continue to support the economy, through minimising the risk of control passing beyond its preferred region as far as practicable.

“Toi Moana is confident the divestment process will reduce risk through having a more diversified investment portfolio, and provide a more sustainable dividend to the Regional Council. It will also ensure it retains some influence over the Port of Tauranga’s activities with at least a 28 percent shareholding through Quayside.”

The decision to set parameters to guide a managed sell down is not a final decision to sell any shares in Port of Tauranga Limited.

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