The Bay of Plenty Regional Council’s decision to set parameters for a partial sell-down of shares in the Port of Tauranga will allow Quayside to diversify its investments, helping Council continue to keep rates down and maintain service levels for years to come.

Although Quayside can reduce its 54.4% shareholding to a minimum 28%, no decision has been made to do so and there is no current timeframe for any sale.

Quayside CEO Lyndon Settle says Council has asked Quayside to ensure any sale optimises value for the shares sold and the remaining stake Quayside will continue to hold in the Port of Tauranga.

“We love the Port. It’s an important regional asset and if shares are sold, we will continue to be a cornerstone shareholder, focused on value creation and ensuring the Port continues to play a positive role in the Bay of Plenty,” says Mr Settle.

“We are in no hurry – we’ll only sell shares if and when conditions are right, when we can get the best outcome for the region and can meet the parameters for sale set by Council.”

Mr Settle says the ability to sell shares will allow Quayside to diversify its portfolio, reduce the risk of having most of its investment in one asset and generate resilient returns for Council.

Quayside will now consider its options and take expert professional advice on how best to deliver on the Council’s mandate.

Quayside investments have grown from $53m to $3.5 billion over 34 years, with non-port investments growing from $15m to $580m.

Last year, Quayside paid a $45m dividend to the Bay of Plenty, which the Council used to reduce general rates by an average of $380 per household.

ENDS

For further information please contact:
Mat Bolland, Shanahan Partners
(022) 489 7722