Port Otago's 100% owner, the Otago Regional Council, is "fully supportive" of the proposed merger with Lyttelton Port of Christchurch, but it will have the final say and it appears retention of dividend payments will be the clincher.
Since 1988, the ORC has received a total $54 million in dividends from Port Otago, most lately a record $9.5 million in September, which included a first special dividend payment of $2.5 million.
ORC chairman Stephen Cairns said the council had been fully briefed on the proposed merger, and while it had not voted on the matter, the "whole council was fully supportive".
Given that the ORC received dividends during the past three years of more than $6 million annually, Mr Cairns said he was looking for details from Port Otago on a "win-win" situation where these were maintained.
He was not in a quandary about future dividend payments.
"No. Unless the merger is a win-win situation for shareholders it won't go ahead. I don't believe it will affect dividends," Mr Cairns said.
Port Otago chairman John Gilks said the "final decision" would be down to the ORC to vote on whether a merger would go ahead.
"Shareholders will have the ultimate say. At present, this is a matter driven by the two boards, who will come up with a recommendation for the shareholders to decide [on]," Mr Gilks said.
He said the investigation into the merger was to find opportunities for growth, which would therefore be reflected in dividend maintenance or growth for both sets of shareholders.
Mr Cairns was upbeat about the potential for a merger, saying both companies had taken a pragmatic approach to the proposal and Otago and Canterbury would "show the rest of the country how to work in partnership".
Any final decision would be put to an ORC vote, Mr Cairns said.
