Port of Tauranga Limited (NZSE:POT)?s major shareholder, Bay of Plenty Regional Council, has started a process to consider a staged sell-down of its 54% stake in the country's biggest port. The shareholding was valued at $2.045 billion at close of trading on December 8, 2023. The port, New Zealand's main export gateway, is listed on the NZX.

Council Chairman Doug Leeder said the process is part of a regular ongoing review by the shareholding's management entity Quayside Holdings Limited and the council of the Quayside portfolio and capital structures and the council's financial strategy. "It's important to note the council intends to remain a significant and strategic stakeholder in the Port of Tauranga through retaining a minimum floor shareholding of 28%. The port is a key regional asset and has delivered good returns to the council over many years.

"We're at the very beginning of a process and no decision has been made by the council or QHL in relation to staged sell-downs and any decision to divest will be part of [the] council's Draft Long Term Plan that will go through a rigorous community consultation process in early 2024. The next step was for the council to make a formal decision at its meeting on Thursday on a draft consultation document to be the basis for community consultation next year. Leeder said the timeline for selling down shares and the number of shares sold would depend on further analysis, market fluctuations and changing economic conditions to ensure the best possible results.

It was expected the proceeds from any staged sell-down would be reinvested by Quayside to ensure the future prosperity of the whole region. That included ongoing subsidisation of general rates for all ratepayers and investment in projects that support the environmental future of the Bay of Plenty. Leeder said the consideration was part of the council's ongoing approach to prudent stewardship of its investment in the port and how Quayside's portfolio can be optimised to benefit the whole region.

Port of Tauranga Chief Executive Officer Leonard Sampson said Quayside had been a stable, supportive majority shareholder over the past 30 years of growth at the port. "We're pleased they intend to retain a significant cornerstone shareholding as the port enters the next phase of growth, which will include a new container berth and the introduction of automation," he said. "We're very proud of the strong returns we have delivered to regional ratepayers, and all our shareholders, over the past 30 years, on top of the employment and business opportunities we have facilitated for the region".