Port Napier share float and NZX listing given go ahead
Wednesday, 26 June 2019
Napier Port's contentious partial privatisation is going ahead following approval of the sale of 45 per cent of the shares by Hawke's Bay Regional Council.
The share float, estimated to provide the council with about $180 million, will include a priority offer for Hawke's Bay residents and non-resident ratepayers, iwi and port staff.
Napier Port chairman Alasdair MacLeod said the port company had been working hard to prepare for the share offer.
The share offer will be formally launched in mid-July, with listing planned on the New Zealand Stock Exchange (NZX) at the beginning of August.
**READ MORE:
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'After many months of work and careful planning, we are in the final stages of preparation for the offer.'
This included drafting a product disclosure statement (PDS), which sets out all the material information potential investors need to know about the company.
'We look forward to telling our story more broadly once the PDS is released to the public,' MacLeod said.
Napier Port will keep everyone informed by setting up a website and free phone number for eligible investors to register their interest and receive updates.
The port company Napier Port will communicate directly with its employees and eligible iwi on progress.
The council carried out consultation with just 57 per cent of submissions in favour of the float.
The regional council voted for additional protections for its majority stake in any future float including preventing share dilution in the event for further share issues, controlling board appointments, and placing covenants on surrounding land to prevent its sale.
The Napier Port will join Port of Tauranga on the NZX.
Lyttelton Port was listed between 2008 and 2013 when the Christchurch City Council repurchased the shares. Full ownership gave councillors greater control to demand a $56m investment in a cruise berth which is expected to affect dividends to the council.
One of the reasons given for privatising Port Napier was because it would need more money to develop in future.