Invercargill City Holdings Limited (Holdco) has decided to sell Invercargill City Forests Limited (ICFL), following clarification of Holdco’s future strategy and expectations.
Holdco is a 100% Invercargill City Council-owned holding company, and its subsidiaries include Electricity Invercargill Limited, Invercargill Airport Limited, Invercargill City Properties Limited, and ICFL.
Council has been working to provide clarity around the strategy and expectations it has of Holdco. These include strategic investments for the broader benefit of the community, as well as investments which produce a commercial return. As part of this, Holdco undertook a review of its investments.
Holdco Chairman Brian Wood said Holdco identified that its investment in ICFL is inconsistent with the strategic objectives agreed with Council.
“On that basis, Holdco has decided to divest its investment in ICFL,” Mr Wood said.
“Holdco is currently working with ICFL and other stakeholders to determine the best method to manage this process. Any funds realised from the sale will be managed in a manner consistent with the strategic direction of Holdco.”