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Christchurch City Holdings remains hopeful of striking a deal with Hong Kong-based stevedoring giant Hutchison Port Holdings for the operation of Lyttelton Port Co.
Chairman Bob Lineham said yesterday that although not in contact with Hutchison, CCH was still optimistic of resuming negotiations over a port joint venture. "We'd like to think we might."
Lineham also said the port company's decision this week not to pay a December half interim dividend was entirely that of the port's board. "We weren't influential at all."
The port company's board canned the dividend, saying it was "in the process of reassessing the company's long-term strategy, future direction and dividend policy" after CCH's aborted takeover.
The company would announce a revised dividend policy when it released its June year results, probably in August.
The dividend cancellation is seen by some as a swipe at Port Otago and other hold-out minority shareholders by the port company, which is now 74 per cent owned by the Christchurch City Council's investment company.
Port Otago's purchase of a 13 per cent stake, recently upped to 15 per cent, blocked Christchurch City's takeover offer for the company. The takeover was to be the first step in a plan to delist it and establish a joint venture to run the port with Hutchison.
Port company chairman Barney Sunstrom, who was out of the country yesterday, has downplayed the suggestion the cancellation was intended to punish Port Otago or other minority shareholders.
Otago Port chairman John Gilks said yesterday he did not see the move as revenge on his company, but "you could be forgiven for thinking it's a way of punishing the small shareholders who didn't take up the takeover offer.
"That's regrettable if it's the case. I imagine there'll be a few people, retirees and trusts who will be disappointed because they will have come to rely on that steady income flow. Until now, LPC has been generous with its dividends."
Gilks said the dividend cancellation would not cause any problems for Port Otago, which borrowed $15 million to part-fund the $30 million purchase of what it insisted at the time was not a blocking stake. "We're fortunate the group has a strong balance sheet."
Port Otago's shareholder, the Otago Regional Council, remained "fully supportive" of the company's purchase.
Peter McIntire, of Dunedin brokerage Greenslades, said both parties were being "a little bit coy". He was unconvinced the dividend cancellation was not intended to get at Port Otago. "It probably is."
McIntire also believed Hutchison would likely be back.
"At this stage, they're just letting the dust settle."
