Ports of Auckland receives takeover bid

Ports of Auckland Ltd (POAL) today said it had received a full takeover offer from its 80 per cent shareholder, Auckland Regional Holdings (ARH).

ARH is offering $8.00 for each ordinary share. At 11.30am, POAL shares were up 10c at $6.55.

The ARH offer is worth $169.6 million, and it said the $8-a-share offer was at a 24 per cent premium to POAL's closing share price yesterday.

The offer values POAL at $848m.

ARH is a special statutory entity, is controlled by the Auckland Regional Council, but has an independent board of directors.

It is charged with generating returns that are invested back into the region's transport and stormwater needs.

ARH chairman Judith Bassett said it saw POAL as a strategic long-term investment.

"The company is well managed and operates in a unique market segment that will always be vital to the Auckland region's economy."

"Under ARH's 100 per cent ownership all POAL land will remain in public ownership, and this will assist in the integrated development of the total waterfront area for port operations and public use."

ARH would focus on the "evolution of land use" not used for ongoing port operations for the benefit of the Auckland region and the public, Mrs Bassett said in a statement.

"... we are sure other civic entities will want to work with us to achieve this goal."

Mrs Bassett said ARH would fund the purchase from its capital reserves.

"Within the context of financial market language, we expect the takeover offer to be seen as 'friendly' by Ports' directors and senior management."

"Our focus is on providing the ARC with a minimum of $750 million in funds over the next 10 years to invest in regional infrastructure, and an efficiently operating POAL will play a key role in enabling us to achieve this."

If the bid was successful, POAL would be de-listed from the sharemarket, but would continue to operate as an independent entity with its own board and management.

POAL shareholders would receive the ARH offer within 30 days.

It would be conditional on ARH getting enough acceptances to give it 90 per cent of the voting rights in POAL.

Other conditions included that, until the offer was declared unconditional, POAL had no material or adverse change on its position today.

In the six months to December 31, 2004, POAL made a net profit after tax of $21.5m, and paid out $16m in fully imputed dividends, which equated to 15c a share.

POAL was partially privatised in 1993 when Waikato Regional Council sold its 20 per cent stake. ARC has always held 80 per cent of POAL.

- NZPA