New Plymouth council approves shortlist for Powerco sale

12.20pm

New Plymouth District Council last night unanimously settled on a shortlist of bidders for the sale of its Powerco shares.

But the council was keeping tight-lipped on who those bidders were and how many were on the short-list, saying the bidders had stipulated total confidentiality.

Following a closed-door meeting, New Plymouth Mayor Peter Tennent said he was confident of achieving a satisfactory final offer for the council's 38.16 per cent holding.

"Once we get to this point, we'll be able to take our eggs out of the single basket that is Powerco and spread them within a managed investment portfolio," he said.

"PricewaterhouseCoopers advise us that this portfolio will give greater diversity, reducing the risk invariably associated with a solitary investment, while ensuring that we at least maintain the dividend income levels we currently receive from Powerco, for the long-term benefit of the community," Mr Tennent said.

Subject to the agreement of the Taranaki Electricity Trust and Powerco Wanganui Trust, which were also considering selling their Powerco holdings, advisers PricewaterhouseCoopers would now conduct further work on refining the shortlist of bids selected, Mr Tennent said.

A final decision on the sale - likely to be worth $400 million - was expected in mid-August.

- NZPA