Port on brink of falling back into public hands

Auckland Regional Holdings is now just short of the 90 per cent stake it needs to enforce a takeover of Ports of Auckland. Picture / Brett Phibbs

Ports of Auckland is today poised to return to full public ownership for the first time since 1992.

The Auckland Regional Council's takeover bid yesterday stopped agonisingly short of the 90 per cent stake it needs to enforce a compulsory acquisition.

But with more than a week until the bid is due to close, its success now looks inevitable.

By 4pm, Auckland Regional Holdings (ARH) - the infrastructure investment arm of the regional council - had lifted its stake to 89.3 per cent of the company's 9.9 million shares. 

ARH, which already had an 80 per cent stake, announced its full takeover bid on April 1. Offering $8 a share, it has made slow progress in its march towards 90 per cent, extending the offer three times.

The bid is now due to close on July 15. ARH said it was confident that it would reach 100 per cent.

Although the Port of Auckland dates to the 1840s, it was restructured into a corporation during the 1980s.

The company, Ports of Auckland, was formed in 1988 when the land and assets were bought from the Auckland Harbour Board for about $250 million.

At that time, 80 per cent of shares went to the Auckland Regional Council and 20 per cent to the Waikato Regional Council. It listed on the stock exchange in 1992 when Waikato sold its stake.

The company now has market capitalisation of nearly $850 million.

ARH has said it will be "business as usual" when it wins full control.