$2.6 million loss from Citibus sale

Citibus went to market at something of a discount. Photo by Peter McIntosh.
Citibus went to market at something of a discount. Photo by Peter McIntosh.
The Dunedin City Council-owned company Citibus Ltd was sold for "in excess of $6 million", it was revealed yesterday.

But the company took a $2.6 million loss on the sale.

The figure was given by Dunedin City Holdings Ltd (DCHL) chairman Paul Hudson, despite requests from the Otago Daily Times for the information being turned down twice in the past few months.

The business and assets of the company were sold on May 31 to Invercargill Passenger Transport Ltd, after DCHL decided it could get a better return on capital elsewhere in the group.

The company's annual report, released yesterday, said the corporate entity of Citibus remained, with all company debt settled.

The ODT requested the sale agreement, price, and other information about the sale in May, and again in August, but DCHL chief executive Bevan Dodds refused to supply it. He said such a release would "unreasonably prejudice the commercial position of the DCHL group".

Asked if he was pleased with the price received, Mr Hudson said: "Pleased is not the right word; the sale price was accepted."

"It would have been nice to get more."

- david.loughrey@odt.co.nz



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