By Felicity Anderson, Nzoom.com Business News Editor
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Monday 15th October 2001 |
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The move needs Inland Revenue, court and shareholder blessing, but Chairman Neville Darrow says he hopes it will take place by the end of the year.
Darrow says the move follows a review of the port company's capital structure. It involves cancelling one in every five shares held.
"The board has taken independent advice on the most appropriate capital structure going forward and on the most suitable option for the capital redistribution, Darrow told shareholders at the company's annual meeting in Auckland on Monday.
Returning capital to shareholders was fair, cost-effective and reasonably simple to carry out.
Darrow says after the restructuring Ports of Auckland would have a conservative gearing level of approximately 50% of total interest bearing debt to debt plus equity.
Ports of Auckland stock lifted 8 cents a share to $5.65 on volume of 215, 000. But the price is still not quite to the $5.67 plus level at which it was trading prior to the September 11 attacks in the United States.
Chief Executive Geoff Vazey told shareholders strong volumes had gone through port in the first three months of the new financial year. Container volumes were up 6% in September quarter and breakbulk volumes were up nearly 9%.
But after the US attacks Vazey said the short-term outlook was more difficult to predict.
"It now appears very likely that world trade growth will be slow in the short term," Vazey said.
Ports and shipping companies around the world are forecasting only minor growth in the year ahead, he said, as their volumes are affected by economic downturn.
However, Ports of Auckland's diversity had served it well during the Asian financial crisis and the company believes it's in a good position to trade well through the present uncertainies.
"We are not exposed to the same extent as ports that focus on a smaller range of cargo, which can be affected very rapidly by changes in the global market place for commodity products or by the globalisation of logistics," Vazey said.
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