MEDIA RELEASE
On Wednesday 26 June 2024, Bay of Plenty Regional Council (Council) elected members moved to adopt the Draft 2024-34 Long-Term Plan and consultation document that includes the approval to enable a managed sell-down in the Port of Tauranga Limited (Port) 54.14% shareholding to a minimum of 28%.
How did this eventuate?
The Local Government Act 2002 requires any change in ownership or control of any of the shares held by Council in the Port to be consulted on, and explicitly provided for in the Council’s Long Term Plan.
This process commenced in late 2023, when Council resolved to consult with the constituents of the Bay of Plenty to enable a potential sell-down to a minimum 28% shareholding from the existing 54.14% holding. Public consultation, hearings and deliberations followed in early to mid-2024, culminating in the outcome announced last week. This process was owned and run by Council.
What happens now?
The decision to enable a managed sell-down is not a final decision to sell any shares in Port of Tauranga Limited, which will require further Council approval. No sale process is currently underway and no timeframe has been set for any sale.
Before any sale can go ahead, further work will be done to agree on the parameters of the managed sell-down process. Quayside will continue to work closely with Council and its specialist advisors throughout the process.
If a sale does proceed, Quayside will retain a minimum 28% shareholding. As such Quayside will remain a significant cornerstone shareholder in the Port of Tauranga Limited, continuing to focus on protecting and maximising the value of its investment.
Invested in our future – Mauri ora roa
Quayside’s role is to grow a responsible and diversified fund, generating long-term returns for the Bay of Plenty Region. Through the guidance provided by our external consultants, we believe a staged sell-down of the Port shareholding supports this objective.
The Port shareholding has proven to be a well-performing growth asset over several years and as Aotearoa’s largest Port by volume of cargo and New Zealand’s international freight gateway.
Reducing the shareholding provides prudent risk management for the portfolio, reducing the current concentration risk and allowing greater diversification across the portfolio.
Chief Executive, Lyndon Settle says, “We are grateful for the outcome and the opportunity to step into a new era to perform our role as stewards of this investment portfolio. Through responsible management, we will grow a sustainable diversified fund that provides for our region’s people, for generations to come”.
For further media information, please contact Quayside at enquiries@quaysideholdings.co.nz
ENDS
