Ports to be equal partners in merger, says Tauranga

Port of Tauranga has denied it will be the dominant shareholder of the super-port that would be created after its proposed merger with Ports of Auckland.

The two ports announced on Wednesday that they were in talks to create a port company that would control 38 per cent of all of New Zealand's imports and exports.

Tauranga chief executive Mark Cairns said the new super-port company would remain listed and that it would be logical to use the NZX-listed Port of Tauranga as the ownership vehicle.

Chairman John Parker said the two ports would have equal shareholding.

"Most takeovers are prettily dressed as mergers, this is a genuine merger," he said. "I can't imagine it would go any other way."

This follows speculation from analysts that Port of Tauranga would aim to take over and own the super-port.

Parker said the political involvement in the ports from councils and central Government was too great for the structure of the merger to be any different.

Ports of Auckland, which is 100 per cent owned by Auckland Regional Holdings, was "the crown jewel of the city" and there would be public outrage if it had a lesser shareholding then Tauranga, said Parker. He said equalising the shareholding would be "either by one [port] company getting money out or one putting money in".

The merger presented a great opportunity for Auckland because it would free up waterfront land quickly.

"It doesn't imply any movement of services and income from Auckland, it simply implies the rationalisation."

Meanwhile, Infratil has reduced its stake in Port of Tauranga from 6.1 per cent to 4.6 per cent after selling to private investors this week.

Spokesman Paul Ridley-Smith said Infratil's shareholding had dropped from 25 per cent over the past four years as part of a decision to concentrate investments in energy and airports.

The company sold the shares when the port's share price jumped 20 per cent to $6.02 on Wednesday. The shares fell 2c cents to $6.10 yesterday.

Economic Development Minister Trevor Mallard said having a co-ordinated approach to infrastructure issues including ports, rail and road was important for economic development.

"It would however be inappropriate to make specific comment on the Auckland and the Tauranga port question at this point in time."