Northland Port sells Port Whangarei for $13.15m

11.00am

Northland Port Company today said it had agreed to sell its Port Whangarei land and facilities for $13.15 million.

Northland Port chairman Mike Daniel said the sale was conditional on the completion of due diligence and was expected to settled by mid August.

The sale price reflected the current valuation of the asset and this would be satisfied by a cash payment on settlement with the remainder due after a further three years, Mr Daniel said in a statement.

Northland Port General manager Jim Smellie told NZPA the company had a confidentiality agreement with the purchaser which meant they could not be identified at this point. Furthermore the agreement prevented him from saying whether or not the purchaser planned to continue port operations at the property.

For the past two years Northport has been progressively moving its operations from Port Whangarei to the Marsden Point facilities it jointly owns with Port of Tauranga.

The sale agreement announced today includes provision for Northport to continue using Port Whangarei facilities until all of its operations are transferred to Marsden Point. "It is envisaged that it will be complete by 2007," Mr Smellie said.

Northland Port shares rose 5c to $2.85 shortly after the market opened this morning.

- NZPA