Napier Port to give workers interest-free loans to participate in share float

Friday, 28 June 2019

Port Napier is about float half its shares to the public

A stevedore worker at Napier, Bruce Winkley said he was likely to take up a special offer to staff to buy shares in the company when it is partially privatised in mid-July.

Winkley, who is also a Maritime Union of New Zealand representative, said he was concerned that ownership of them should remain in Kiwis' hands.

He also favoured a priority offer to local iwi and Hawkes Bay residents - however once the shares are privatised the port company has no control over who might buy them.

The 265 Napier Port workers are being offered interest-free loans of up to $5000 each to buy shares in a special allocation reserved for them, port chief executive Todd Dawson said.

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'We hope it fosters a sense of ownership and it recognises the contribution by workers over the past 150 years for the value they have created,' Dawson said.

He declined to give any predictions about the potential increase in value of the shares - 'That would be crystal ball gazing.'

Napier Port chief executive Todd Dawson says the special share entitlements will give the community a sense of ownership.

Owners of the shares will also receive dividends.

The experience of Port of Tauranga's share allocations for staff has been positive with the shares increasing in value faster than expected, with about 90 per cent of the 208 staff owning some.

More port developments are expected to cope with future freight growth and more ships.

Napier Port will join Port of Tauranga on the New Zealand Stock Exchange (NZX) along with Northport at Whangarei, and Southport in Invercargill.

Ports of Auckland and Lyttelton Port have both been listed on the NZX for periods before returning to control of local councils.

A separate allocation of shares for executives would be revealed in the Napier Port product disclosure documents soon to be published. In most company floats the executive allocation forms part of payment incentives.

A computer web page would be set up to allow workers to apply for the $5000 loans and subscribe for the shares without having to go through sharebrokers.

They could subscribe for more shares with their own money if they chose, Dawson said.

Iwi entities also eligible for a preferential allocation offer include Ngāti Kahungunu Iwi Incorporated, the four Taiwhenua of Ngāti Kahungunu Iwi Incorporated, and each tangata whenua appointer as defined in the

Hawke's Bay Regional Planning Committee Act 2015.

Hawke's Bay residents and non-resident ratepayers applying for shares will be guaranteed a minimum allocation of $2000 of shares, Dawson said.

The allocations were part of the requirements agreed by port owner, Hawke's Bay Regional Council, which required the float to structured to enable strong local ownership.

The council recently gave final approval for Napier Port to proceed to go ahead a 45 per cent share offer.

The port employees have been told about the special entitlement.

Napier Port Chairman Alasdair MacLeod said Napier Port has been working hard to ready itself for the share offer.

'Like the regional council we believe strong local participation is desirable.'

The priority preferential allocations were aimed at further aligning the people of Hawke's Bay with the aspirations of the port.

MacLeod said the port was in the final stages of preparation and was targeting the launch of the share offer for July 15, with a targeted listing on the NZX in August.

Full details will be disclosed in a product disclosure statement which will set out all the relevant information to potential investors.