Capital reduction approved for POA

The port company was given the green light for the return at a special meeting in Auckland on Wednesday. Under the proposal the company will cancel 20% of the shares on issue and repay around $132.5 million of surplus capital to shareholders on a pro rata basis.

Chairman, Neville Darrow, says the capital reduction is an important step in the company's plans to maximise value to shareholders.

The port says that earlier in the meeting shareholders considered, but did not approve, an alternative shareholder proposal that involved the payment of a $2 million bonus to employees and approximately $130.5 million to shareholders

Notice about the record date and payment to shareholders will be given when the proposal has been confirmed by the High Court.

Earlier this week ratings agency Standard & Poor's gave the port's $250 million commercial paper programme, which will be used to fund the capital return and for working capital, an A-1 short term rating. The programme is scheduled to be issued this month.

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