Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Christchurch City to mop up remaining shares in Lyttelton

Christchurch City seeks to mop up remaining shares in Lyttelton Port

Aug. 1 (BusinessDesk) - Christchurch City Holdings, the city's infrastructure investment arm, says it will offer to buy the 20 percent of Lyttelton Port Co it doesn't already own and has a lock-up agreement for Port Otago's 15.5 percent holding. The shares soared on the news.

CCH already owns 79.6 percent of the port company and with Port Otago's holding it will comfortably be above the 90 percent threshold to compulsorily acquire the rest of the shares. It will offer $3.95 a share for remaining stock in the port company, higher than the stock has ever traded and valuing the business at about $404 million. In addition, Lyttlelton Port would also pay a special dividend of 20 cents to existing shareholders, using any imputation credits to pay the tax. The shares jumped 24 percent to $4.10 on the news

“This acquisition will enable CCH to have greater flexibility in its relationship with LPC” said Bob Lineham, the investment company's chief executive.

A formal takeover offer is likely to be made next week, the company said. On completion the port company would be delisted.

The transaction comes on the same day that the city council released a report from investment bank Cameron Partners identified a $400 million gap in Christchurch's ability to pay its share of the earthquake rebuild. That's on top of an already identified $440 million funding shortfall in a report by accounting firm Korda Mentha.

The city is contemplating the sale of a strategic stake inits investment company, which controls the city's port, airport and electricity network to help close the gap.

Mayor Lianne Dalziel argues the city would gain strategic advantage from bringing on new investors to CCH. A funding shortfall above $800 million could threaten the city's A+ credit rating from Standard & Poor's and may breach its financial obligations under local government finance legislation.

CCH owns 89.3 percent of Orion, the city's electricity network, 75 percent of Christchurch International Airport, as well as the port stake, and businesses including the Red Bus company, City Care, Enable Services and Ecocentral.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news