Hawke’s Bay Regional Council beneficially owns 100% of the shares in Napier Port through HBRIC Ltd.
In December 2018, Hawke’s Bay Regional Council voted to progress the work required to support a minority initial public offer (IPO) of up to 49% of Napier Port. On 29 May 2019, the Regional Council voted to proceed with a 45% IPO of Napier Port, subject only to final decisions on pricing and market conditions.
The Regional Council will likely make the final decision to proceed in June. If the decision is made to proceed, an offer of shares is likely to be made in July.
This decision to proceed with an IPO follows nearly two-and-a-half years of work on how best to fund investment in Napier Port. A new wharf costing between $170 million - $190 million is the first step in this investment programme. This is a large infrastructure project and construction of the wharf will need to begin in 2020 to be ready to use in 2022.
The Napier Port Board has approved the business case for the new wharf, which was one of the Regional Council’s conditions ahead of a decision on whether to proceed with an IPO.
Progressing with a minority share sale means shares in the Port will be listed and traded on the NZX stock exchange. Proceeds generated from the issue of shares would enable the Port to pay down debt and to provide capacity for investment in the new wharf, as well as release funds for the Regional Council to invest in a ring-fenced future fund to diversify its income streams.
The Regional Council voted for the minority share option to provide the funding to grow the Port. This protects ratepayers from the costs of paying for Port expansion, retains majority Council ownership and control, and allows the Regional Council to retain its focus on protecting and enhancing Hawke’s Bay’s natural environment.
The Regional Council held an extensive community consultation in 2018, attracting 3500 submissions, on the proposal to float a minority stake in the Port on the NZX.
The Regional Council made its decision to further develop the minority stake option on 19 December 2018. Comprehensive papers including analysis of submission feedback and a review of the consultation assisted in the decision-making process. These papers are here.
The Regional Council also voted in March 2019 to put in place a range of protections to protect the Council's majority ownership position following any IPO, and to create a new Council Controlled Organisation as the vehicle to take Napier Port to market. You can see the announcement of these decisions here.
On 29 May 2019 the Regional Council voted to proceed with a minority IPO of Napier Port subject only to final decisions on pricing and market conditions. The Regional Council also voted to appoint two majority shareholder-appointed directors to the Napier Port Board and confirmed that Napier Port Holdings Limited would be the offeror of shares.
We are not at that point yet and no shares are currently for sale. At this stage, if Council makes a final decision to proceed, a minority share offer is being targeted around July.
When shares in Napier Port are offered, there will be a detailed product disclosure statement issued which anyone considering investing in shares should read.
People considering buying shares in any company should seek independent and qualified financial advice to properly inform themselves.
Employees of the Regional Council or the Port can’t give any advice on this matter. Legally, they are prohibited from doing so.
Yes. The Regional Council voted to maximise local participation in an IPO, recognising the public feedback received during consultation. There will be a priority share offer for Hawke’s Bay residents including iwi and Port employees. Details on this priority offer will follow if final confirmation to proceed with an IPO is provided by Council in June.
If you want to be kept up-to-date on decisions around any minority share sale in Napier Port, please fill out the form below and click submit. We will email or call you when further decisions are taken around the possibility of a share sale.
Napier Port is an international port serving central New Zealand. Its East Coast location close to New Zealand’s main international shipping lane together with excellent road, rail and coastal transport links enables an efficient pathway to market for an increasing range of exports in an expanding central New Zealand catchment.
Hawke’s Bay Regional Council beneficially owns 100% of the shares in Napier Port through HBRIC Ltd. Council’s strategic objective is for HBRIC Ltd to continue to beneficially hold the shares of Napier Port as a key means of assisting economic development of the region.
The Council appoints the Directors of Napier Port on the recommendation of HBRIC Ltd.
Disclaimers and Copyright
While every endeavour has been taken by the Hawke's Bay Regional Council to ensure that the information on this website is accurate and up to date, Hawke's Bay Regional Council shall not be liable for any loss suffered through the use, directly or indirectly, of information on this website. Information contained has been assembled in good faith. Some of the information available in this site is from the New Zealand Public domain and supplied by relevant government agencies. Hawke's Bay Regional Council cannot accept any liability for its accuracy or content. Portions of the information and material on this site, including data, pages, documents, online graphics and images are protected by copyright, unless specifically notified to the contrary. Externally sourced information or material is copyright to the respective provider.
© Hawke's Bay Regional Council - www.hbrc.govt.nz / +64 6 835 9200 / firstname.lastname@example.org