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

 

Port Nelson Share Buy Back

Port Nelson Share Buy Back

The directors of Port Nelson Limited today advised that as a result of a review of the capital structure of the company they have recommended proceeding with a share buy back that will deliver $25 million to the two shareholders, Nelson City Council and Tasman District Council.

The port has been reviewing its capital structure over the last two years, in line with the company Statement of Corporate Intent, and has also extensively reviewed the 10 year strategic capital development plan.

Chairman Nick Patterson said the focus of the review had been to achieve a capital structure more in line with the port sector in general, and to establish a level of shareholders¹ funds that was more appropriate to the nature and risks associated with the port¹s business.

³We are confident that the company will continue to have a strong balance sheet well able to support the development and maintenance of our port facilities,² he said. ³Port Nelson has been faced with greatly rising property values that have been largely unrealisable due to the long term nature of rental reviews. This has resulted in returns on growing shareholders¹ funds that are below targeted levels, and we believe the return of capital will provide better options for the shareholders.²

Mr Patterson noted the board was cognisant of the significant upcoming regional development demands being faced by the shareholding councils.

³We feel the timing of the share buy back will be welcomed by the shareholders and by the people of the region in general.²

On completion of the share buy back, the shares purchased will be cancelled, thus leaving the two shareholders with 100% control of the port company.

Mr Patterson said the share buy back would not affect the future dividend plans of the company or ability to fund capital works.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Digitl: Bumper year ahead for NZ IT sector

Gartner says New Zealand spending on technology products and services will grow 7.4 percent this year. The company’s latest forecast says the market will total NZ$15.3 billion in 2022... More>>



Fonterra: Lifts Forecast Farmgate Milk Price Range

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range to NZD $8.90 - $9.50 per kgMS, up from NZD $8.40 - $9.00 per kgMS. This increases the midpoint of the range, which farmers are paid off... More>>

Federated Farmers: NAIT Levy Increases Must Achieve Accurate, User-friendly System
Nobody welcomes extra costs but if OSPRI is to catch-up on under investment in the NAIT platform and deliver on its workability and farmer support, levy increases are probably necessary, Federated Farmers says... More>>



Skoltech: Study Probes Earth’s Turbulent Past To Explain Where Oceans Came From

The origin of water on our planet is a hot question: Water has immense implications for plate tectonics, climate, the origin of life on Earth, and potential habitability of other Earth-like planets. In a recent study in Physical Review Letters, a Skoltech professor and his Chinese colleagues suggest... More>>


Statistics: Household Net Worth Grows In The September 2021 Quarter But At A Slower Pace Compared To March 2021

Household net worth grew by $60.7 billion in the September 2021 quarter compared with the June 2021 quarter, Stats NZ said today. This represents an increase of 2.5 percent, a similar result to the June 2021 quarter, which was up $60.6 billion or 2.6 percent... More>>

TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>