KEY POINTS:
The Business in its inaugural issue lifted the the lid on the secretive Todd Family empire. It showed for the first time how the Wellington dynasty interests extended much further than the Todd Corporation, the most concrete symbol of the family's wealth.
Instead the Todd Building on the
capital's waterfront houses a team of investment managers that not only manage the assets pooled inside Todd Corporation, but also offer - for a fee - investment management services to the exclusive club made up of the 160 direct bloodline descendants of founder Charles Todd.
The extent of these assets managed by what the head of the family John Todd calls the family office remains opaque. But as the $2.6 billion Todd Corporation pays an average of around $328,000 in annual dividends for each of the beneficiaries, and is known to have paid special dividends once assets such as Todd Motors have been sold, it is clear the fortune is considerable.
The Todd Corporation itself has its genesis in the family's wool scourer and fell mongery founded in 1885. But since then its focus has shifted with the demands of the economy.
Here is a snapshot of its achievements:
* At the height of the Depression it began importing petrol from the Soviet Union, establishing New Zealand's first big indigenous fuel company.
* It joined international oil giants Shell and BP to discover and then exploit the Maui gas field, which has provided 27 years of cheap energy and earned hundreds of millions of dollars in exports.
* Its Todd Energy arm is the largest indigenous petroleum explorer and producer, holding strategic stakes in all key reserves that will help make up the shortfall left by Maui - Pohokura, Mangahewa and Kupe.
* Its Todd Motors division was one of the country's largest car assemblers.
* It was responsible for the importation of Boeing aircraft.
* It was a key player in the development of Clear Communications, that today, as TelstraClear, is Telecom's main competitor.
* It helped fund and develop satellite broadcaster Sky Network Television and remains an important shareholder.
Todd Corporation now has two distinct arms, Todd Energy and Todd Capital.
Todd Energy - employing over 200 people - is the most prominent of the family's interests and was valued at the start of the year by sources close to The Business at $2.1 billion.
It now holds interests in producing fields that account for some 90 per cent of annual hydrocarbon production. These include a 6.25 per cent stake in the Maui field, a half share in the Kapuni field and full ownership of the McKee and Mangahewa gas fields.
It also has a 26 per cent stake in Pohokura, which last year began commercial production. Other assets include a 35.8 per cent stake in electricity generator King Country Energy, 100 per cent of Bay of Plenty Electricity, and LPG distributor Nova Gas.
The last year was marked by Todd defending its patch and increasing its exposure to the booming electricity market. Its biggest victory came in the middle of the year when it fought off Shell over their Shell Todd Oil services joint venture.
At the root of the dispute was a plan by Shell to strip Todd of its involvement with production at the Maui, Pohokura and Kapuni gas fields, ahead of a potential sale of Shell's US$1 billion ($1.4 billion) portfolio of exploration and production assets.
Meanwhile, last month it bid $82.5 million to take control of King Country Energy, kicking off what looks set to be a protracted takeover battle.
Todd Capital is a long-term strategic investor that seeks significant corporate investments in New Zealand and Australia. Its investments include Sky TV, Woosh Wireless, Crown Castle in Australia and Landco.
