The Otago Regional Council has rejected a suggestion Port Otago sell its 15.5% stake in rival Lyttelton Port Company, worth about $35 million, in preferance to borrowing $37.5 million to fund Dunedin’s proposed stadium.
Financial research by brokerage ABN Amro Craigs had suggested Port Otago, 100%-owned by the regional council, could sell its stake to fund the council’s share of the Awatea St stadium funding.
Regional council chairman Stephen Cairns rejected the suggestion when contacted yesterday, saying it “was never an option”.
He reiterated that Port Otago maintained a long-term view to holding the stake, which it bought in 2006.
Port Otago last year received $977,000 in LPC dividends, based on a 6.3c per share payout. Continue reading