Waimate to keep shares

Any potential buyer of Alpine Energy shares looks unlikely to become a majority shareholder with Waimate District Council confirming it won’t sell its shares – but Timaru mayor Damon Odey says that’s not news to him.

Mackenzie District Council is yet to make a decision but looks set to follow suit, and LineTrust South Canterbury has made its position clear – it wants to buy some, if not all, of Timaru District Holdings Ltd’s shares should they go up for sale.

Waimate District mayor Craig Rowley said yesterday his council had ‘‘unanimously resolved to retain its shares in Alpine Energy’’.

‘‘During the past 11 years, Waimate has received an average annual return on investment of 5.05 per cent which is a total of $7.1m from its 7.54 per cent ownership,’’ Rowley said.

‘‘Council has applied this income to offset general rates. The council believes that we hold the [Alpine Energy] shares in trust on behalf of the consumer and ratepayer.

‘‘Alpine Energy also provide other indirect benefits to the community and we want to see the control of the company remain in South Canterbury.’’

His comments come in the wake of Timaru District Holdings Ltd proposing to sell its 47.5 per cent stake in the lines company.

Alpine Energy is owned by TDHL (47.5 per cent), LineTrust South Canterbury (40 per cent) and the Waimate (7.54 per cent) and Mackenzie (4.96 per cent) district councils.

If TDHL goes ahead with the sale, the other three shareholders have the ability to exercise their first right of refusal.

Odey, who is also TDHL chairman, said he was not surprised by Rowley’s comments. ‘‘From the outset, they’ve made it very clear that they didn’t want to sell . . . it’s not news to me.’’

While it was yet to make a final decision, Mackenzie District mayor Graham Smith said his council was listening to the feedback of its community, which strongly supported retention of shares.

‘‘I have to listen to my council and my community, and my community seems to be quite adamant that the company’s set up to provide a good infrastructure.

‘‘My council has a feeling that we’re a very small shareholder. We’d like to have some say in the company, and we quite like the model at the moment,’’ Smith said.

‘‘I understand Timaru’s position, but at the same time, we’re not wanting to buy, or necessarily sell any shares, but we do want to protect our shareholding.’’

Last week, LineTrust South Canterbury signalled its intention to increase its 40 per cent stake in the lines company.

LineTrust chairman Grant Eames said it had been receiving professional advice on the best way forward. The trust has suggested it could partner with someone in the electricity industry to help buy an increased shareholding.

While there had not been any definite offers or partners yet, Eames said there had been a lot of calls from interested parties.

‘‘There have been a number of calls, but we’re still in limbo. It all hinges on the council’s decision on December 19 before we can make a move,’’ Eames said.

He said it had been in touch with the Waimate and Mackenzie district councils about the proposal.

TDHL announced its proposal to sell down its shareholding on November 7, which went out to public consultation on November 8. The Timaru District Council has received more than 250 submissions on the proposal.

Submissions close on December 10, with council hearings scheduled for December 18. Councillors are expected to make a decision on December 19.