(file image) Photo: RNZ / Cole Eastham-Farrelly
Port of Tauranga's major shareholder, Bay of Plenty Regional Council, is looking at a possible sell-down of its majority 54 percent stake in the country's biggest port.
The council's shareholding in the NZX listed company is valued at about $2 billion, and is held by a specialist trading company, Quayside Holdings.
Regional council chair Doug Leeder said Quayside and the council were reviewing all investments and finances as part of the 2024-34 long-term plan.
"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 percent.
"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 council's draft Long Term Plan, that will go through a rigorous community consultation process in early 2024."
The regional council will decide later this week on the draft document to be used for community consultation next year.
Leeder said the size and timing of any of the port stake would depend on analysis, market and economic conditions to ensure best returns.
If a sale went ahead then the proceeds would be reinvested by Quayside to ensure the future prosperity of the region, which could be rate subsidisation, and investment in regional environmental projects.
The Port of Tauranga proposal was the latest asset sale mooted by a local body, alongside Auckland's discussion about divesting the rest of its airport stake and leasing out Port of Auckland's operations, and Wellington City Council's review of its airport shareholding.