Christchurch City Holdings – the investment arm of the city’s council – has entered into agreements that begin the process of taking over the rest of Lyttelton Port Company it does not already hold.
It announced Friday it has entered into a lock-up agreement with Port Otago Limited (Port Otago), a 15.48% shareholder.
CCHL currently owns 79.7% of the ordinary shares in LPC. It intends to offer LPC shareholders $3.95 per ordinary share.
In addition, CCHL will be seeking payment by LPC of a special dividend of 20 cents per share. It is expected that a formal takeover notice will be issued early next week.
“This acquisition will enable CCHL to have greater flexibility in its relationship with LPC,” says Bob Lineham, CEO of CCHL.
