The international port investment arm of the Li Ka-shing flagship, Hutchison Whampoa, yesterday abandoned a $559 million bid for a controlling interest in Lyttelton Port Co, after a deal with the New Zealand firm's majority shareholder unravelled.
Christchurch City Holdings Ltd (CCHL), the investment arm of the city's government, was forced to increase to NZ$2.20 ($10.30) per share its offer for the 31 per cent it does not own in Lyttelton after a minority partner blocked an earlier sale to Hutchison.
Hutchison Port Holdings, which has agreed to buy 49.9 per cent, on February 14 offered NZ$2.10 each for 19.42 million shares, or $558.8 million, a 13.8 per cent premium to their average trading price for the six months before the offer date.
'Hutchison Port Holdings confirms that, in agreement with Christchurch City Holdings, it will not proceed with its proposed investment in Lyttelton Port, as CCHL has not been able to privatise [Lyttelton] on the terms anticipated,' Hutchison said.
'However, we remain open to further discussions with CCHL in the event they are able to complete the takeover on acceptable terms.'
It is understood CCHL's improved offer has the support of Lyttelton shareholders. But Port Otago, the minority shareholder that stymied the previous deal by increasing its shareholding to a 10.1 per cent 'blocking stake', remained unimpressed yesterday.
'We will not be accepting the new offer,' chief executive Geoff Plunkett told the South China Morning Post. 'We paid NZ$2.35 a share for our initial stake and we see more value in Lyttelton than that. It is a long-term investment for us and we have no intention to sell our stake.'
