16 Jul 2013

Port of Tauranga shares dive in May

1:30 pm on 16 July 2013

Shares in Port of Tauranga took a steep dive in May after Ports of Auckland announced it had won back about 25% of the business it lost to Tauranga a year earlier.

The shares fell from a record $15.74 to $13.50, before bouncing back to $14.50 on Monday.

Port of Tauranga chief executive Mark Cairns says his company's share price had become a little overheated but even so, the market probably over-reacted to the news.

Meanwhile, an analyst at Forsyth Barr expects Port of Tauranga to announce some form of return of capital to shareholders, most likely a special dividend, when it announces its annual results next month.

Andy Bowley says the company has very low levels of debt on its balance sheet and more than $50 million available in imputation credits. He says a special dividend of up to $1 per share is possible.