Environment Southland retains majority shareholding in South Port

Today Environment Southland has realised $30 million through the sale of 3,750,000 shares in South Port NZ Ltd, creating an opportunity to deliver greater long-term value for Southland ratepayers while retaining a 52% majority shareholding.

The sale reflects the investment direction endorsed through our 2024-34 Long-term Plan consultation to get the best long-term value from the financial assets we hold on behalf of Southland ratepayers.

We will reinvest the proceeds to diversify our financial portfolio in a way that broadens our sources of income. Essentially, reducing our shareholding is about reducing risk by not having too many eggs in one basket.

Income from our financial portfolio is used first to maintain key Council reserves (e.g. disaster recovery reserve) and then to reduce the amount collected through general rates.

Any gains not withdrawn remain in our managed funds, supporting their growth over time and providing a buffer against future ups and downs of the financial markets. This approach helps protect our financial portfolio and supports stable returns over the long term.

The Council has a responsibility to act in the best interests of Southlanders and to manage public assets (our managed funds, South Port shares, flood infrastructure network) carefully and responsibly. To that end, we have been working closely with independent advisers, Jarden, throughout the process to ensure the sale of the shares delivers appropriate value.

Our financial and economic analysis shows we can get better returns for ratepayers by diversifying, especially at this time when South Port is doing well.

South Port is a successful business and a strategically important regional asset and we're proud to remain its majority shareholder.