Election adds spice to port-shares offer

Election-year politics is the reason Ports of Auckland's 6200 small shareholders have received an invitation to sell their shares to the Auckland Regional Council, a senior sharemarket analyst believes.

The analyst, who declined to be named, said the regional council's assets investment arm, Auckland Regional Holdings (ARH), would make the takeover come hell or high-water before the general election.

A National government would never give the tick to such a takeover of a listed ports company.

ARH is offering $8 a share, or nearly $170 million, for the 20 per cent of Ports of Auckland (POA) shares it does not already own. The shares closed on Friday 1c down at $7.89.

ARH's bid is partly conditional on there being no material adverse changes to POA's financial position. A possible threat is a pending announcement by P&O Nedlloyd on the future departure point for the bulk of the exports of major customer Fonterra.

If that cargo is transferred to Port of Tauranga, it will account for 20 to 30 per cent of POA's export container business.

ARH's offer closes on June 3.