Ports of Auckland payout delayed

By Phil Boeyen, ShareChat Business News Editor

Monday 10th December 2001

A $132 million capital repayment to Ports of Auckland (NZSE: POA) shareholders should now take place in April next year - four months later than hoped.

The capital repayment was agreed at the company's AGM in October and it was envisaged that the cancellation of 1 in every 5 shares could have been completed by the end of this month.

"Unfortunately, our efforts to effect payment by the end of the calendar year have been frustrated by the timeframes within which the IRD is able to work," POA says.

"The department advised the company in November that they would not be in a position to look at the matter for 7 to 8 weeks. Further contact with the department in December confirms that this matter will not be dealt with before Christmas. This delay likely precludes payment until well into the New Year."

The port company now says that, assuming the taxation position is sorted out by February, a special meeting will be held in March and payment made in April.

"You can be assured we will continue to work closely with the IRD and use our best endeavours to bring the matter to shareholders earlier if that is at all possible."

Ports of Auckland is seeking a binding ruling from the Commissioner of Inland Revenue to determine whether the proposed return of capital gives rise to a dividend.

Comments from our readers

No comments yet