Western Bay of Plenty District Council has decided to sell its holdings in Zespri and Seeka. Photo / Alex Cairns
Western Bay of Plenty District Council has decided to sell its holdings in Zespri and Seeka. Photo / Alex Cairns
The Western Bay of Plenty District Council has agreed to sell its shareholdings in kiwifruit marketer Zespri Group Ltd and packhouse business Seeka Ltd.
Councillors made the decision in last week’s Audit, Risk and Finance Committee meeting, the council said in a media statement on Friday.
The move formed part of the council’s financial strategy to review non-core assets and ensure funds went towards activities that directly benefit the community.
According to the agenda for the June 4 meeting, the council holds 26,490 shares in Zespri and 11,247 shares in Seeka, with a combined value estimated at $207,000.
The Zespri shares had a market value of about $164,500 and the Seeka shares about $42,500, based on trading prices at the end of April.
The council’s dividends totalled about $100,000 from Zespri and $3100 from Seeka over three years to 2023/24.
Horticulture, and kiwifruit in particular, is a significant part of the Western Bay district’s economy.
Committee chairman, councillor Murray Grainger, said in the statement that the decision to sell was made carefully and with a strong awareness of the district’s rural and horticultural heritage.
“We’re very proud to represent a district with such a strong horticultural sector, and we absolutely recognise the role that Zespri and Seeka play in our local economy.”
He said these particular shares were not acquired as part of a deliberate investment strategy, and rather came about through past land and orchard transactions.
Western Bay of Plenty councillor Murray Grainger. Photo / John Borren
“While the shares have provided some dividend income, they’re not directly linked to the delivery of council’s services or strategic outcomes,” Grainger said.
The proceeds from the sale would be allocated to the council’s general rates reserve, “helping to strengthen [the] council’s financial position and providing flexibility to fund priority projects, reduce debt, or enhance financial resilience”.
“In today’s economic climate, it’s important we stay focused on sound financial management and make decisions that best serve our communities,” Grainger said.
He said selling the shares now would help the council reduce exposure to market volatility and focus on delivering services and infrastructure that mattered most to its communities.
“As with any good housekeeping, it’s important we regularly check what we’re holding and make sure those assets are still serving a purpose for our community,” Grainger said.
“In this case, selling the shares makes good sense and allows us to put the funds to better use where they will directly support our ratepayers.”
It comes after the Bay of Plenty Regional Council last year agreed to start selling down its shareholding in the Port of Tauranga from 54.14% to a minimum of 28%.
