Port Otago took a 15.5% holding in LPC in 2006, essentially forming a blocking stake to a takeover proposal at the time, with that stake yesterday valued at $33 million and shares trading around $2.09.
No dividends to shareholders had been paid since October 2010, and Otago regional councillors heard yesterday the value of the shareholding on Port Otago's book had been written down by $5.22 million.
Port Otago has become the fastest container-handling port in the country for the first time and yesterday delivered a near-record $11.75 million annual dividend to its owner the Otago Regional Council (ORC).
Following presentation of Port Otago's full-year-to-June report to the ORC yesterday, chairman Dave Faulkner said in an interview Port Otago would retain the 15.5% "strategic interest", saying "now was not a great time to sell, and we don't have to sell".
"We want to preserve our options in holding this strategic interest ... for whatever happens in the future," Mr Faulkner said.
He had earlier told the regional councillors LPC shares had "settled" around $2.
"While the dividends have dried up, they [LPC] are trading well considering [the damage to] the wharf areas," he said.
In response to councillor Gerry Eckhoff's question on whether LPC's rebuilding posed a "threat or opportunity" to Port Otago, Mr Faulkner maintained it was still an opportunity.
Despite widespread earthquake damage to LPC's infrastructure, it had continued to function well, Mr Faulkner said, and could shortly expect a dairying boost from a new Fonterra plant in Darfield.
He noted the "big issue" faced by LPC was the settlement of insurance claims before it could begin a "major rebuild", and it could be five to 10 years before getting back to "full operational terminal" status.
Dunedin businessman Dougal Rillstone retired from the port board in June after 14 years, including time as Port Environment Liaison Committee chairman, with Paul Rea having been appointed in December.
