Port firm sells half-share in Sea Tow

Northland Port Corporation has sold half its interest in the tug and barge company Sea Tow to the Australian company Adsteam Marine for $4.35 million.

This is the equivalent of 50 per cent of the shareholders' funds of the company, said chairman Mike Daniel.

Payment would be in cash and Adsteam had been granted an option to buy the remaining half in 2005, he said.

Mr Daniel said there were "considerable synergies" to be gained by the association between the two companies. Sea Tow had many years' experience in the tug and barge business, while Adsteam had a detailed knowledge of the Australian marine industry.

The sale would enable Sea Tow to refinance its long-term borrowings, resulting in the repayment of about $12 million to Northland Port. The transaction followed the sale of non-performing subsidiaries Marine Steel, Central Cranes and Northport Engineering.

- NZPA