Lack of information frustrating

Port Otago - which holds a 15.5% stake in listed Lyttelton Port of Christchurch - is becoming increasingly frustrated by the lack of financial rebuilding information from the port company.

The contentious Port Otago stake in its northern competitor cost it $2.30 per share to acquire and is valued at $2 per share, but Port Otago believes the true value is about $3 per share.

Port Otago's stake in LPC was yesterday valued at $34.8 million.

The 15.5% holding represents a blocking stake to any takeover offer. That was the case when Port Otago spent $37 million grabbing the stake in March 2006, stopping majority shareholder Christchurch City Council from selling LPC to an international port manager at the time.

Port Otago chairman Dave Faulkner updated Otago Regional Council councillors on its LPC stake yesterday, saying ''the big question is the value of Lyttelton''.

As a shareholder, Mr Faulkner had attended LPC's general meeting and publicly asked for more information.

''We were told `we don't know'. After two years you would expect they would have a [estimated] range,'' Mr Faulkner said.

''It's important for us as a shareholders to know the difference between [rebuilding] costs and insurance [liabilities] for our outlook,'' Mr Faulkner said.

Councillor Gerry Eckhoff queried holding the LPC stake, asking if it was seen as ''hostile'' by LPC and therefore LPC was ''not concerned about delivering a dividend?''.

''Yes. At the time [of acquisition] Lyttelton very much considered that hostile,'' he said.

However, Mr Faulkner noted it was not surprising LPC would want to keep cash for itself, given the extent of infrastructure spending it was embarking on.

Port Otago has always maintained its stake was a long-term holding, and given its lower-than-purchase price value at present, Mr Faulkner confirmed the stake would be held as long term.

''There's not a queue of buyers out there,'' he said, because of the extent of work which had yet to be undertaken.