Presentation on theme: "Membership Meeting 13 th July 2012. Objectives –To Ensure That the Port of Dover is Owned in Perpetuity by the People of Dover and Dover District –To."— Presentation transcript:
Objectives –To Ensure That the Port of Dover is Owned in Perpetuity by the People of Dover and Dover District –To Ensure That the Port of Dover is Run Efficiently in the Best Interests of All its Current Stakeholders –To Endow the Community With Sufficient Funds to Seed Regeneration Efforts and Ensure an Ongoing Revenue Stream to Revitalise Dover to the Benefit of the Surrounding District and the Nation
What Does The Government Want to See? 1.Essential Criteria Community participation: The Secretary of State will not approve an application for the sale of a trust port under the 1991 Act unless the sale is considered likely to deliver an enduring and significant level of community participation in the port. Such participation could take a variety of forms, but must include the ability to influence the ports long term development and may include the right to receive a share in the profits of the port, or the future increase in its value. It does not necessarily require a community role in the operation of the port. Future investment in, and development of, the port The Secretary of State will not approve an application unless the sale is considered likely to deliver an ownership model with the capability and access to capital to meet future investment needs and to exploit development potential of the port. Fair price The Secretary of State will not approve an application unless the sale is considered likely to represent good value for money, having regard not only to Exchequer proceeds and market conditions, but also to other benefits including those to the community and the wider economy. Fair competition The Secretary of State will not approve an application that is likely to deliver an ownership model which results in unsatisfactory levels of competition in the relevant sector. 2.Highly Desirable criteria 3. Desirable criteria
What Do The Dover Harbour Board Propose? Sale of the Vast Majority (at least 85%) of Shares in the Port of Dover to Private Equity Investors or Investor Set up a Trust for the Community (PDCT) with a cash endowment of £10million and £20million of Shares in the Port of Dover Pay the PDCT £1million cash per year for 5 years in lieu of Dividend Payments Pay a Total of £5.6million of shares to employees to be held by an Employee Share Ownership Trust. These Shares Will be Distributed as Follows: 1.£3.68m shared amongst all employees on a sliding scale related to salary. 2.£920,000 shared between Senior Managers and Executives part way through handover process when senior managers transfer to new owner. 3.£1m awarded to Executives in proportion to their contribution to making privatisation successful
So, Whats Different? PDCT is granted a veto over certain matters PDCT shares can be sold Two Partnership Directors are appointed to the Board of the private port company Various new advisory forums set up, to be organised by the Partnership Directors PDCT registered a shelf company in November 2011 and to be launched with community ownership in due course PDCT has no charitable status No enhancement in proposed share ownership, endowment or dividends More detail on shareholding: –right of veto which could be overridden on sale –PDCT not free to sell its shares and have rights to tag along on any sale –two PDCT directors on operating company board PDCT will be subject to scrutiny by the privatised operating company who can make non-binding expressions or wishes as to PDCTs activities To influence majority owner decisions, both Partnership Directors must vote the same way No guarantee of permanent community involvement or minority ownership Port of Dover more likely to have foreign ownership
Why Do We Think This? Just take a look at the following example copied from the DHB papers which have been presented to Government. Veto In order to enhance the rights attaching to the PDCT's equity stake, it is proposed that the PDCT should benefit from a right of veto in relation to: 1. the sale by the Company of all or a major part of the statutory harbour undertaking of the Port of Dover (other than as part of an internal group reorganisation); 2. variations or reductions of share capital (including share buy-backs) which are designed to return capital to investors otherwise than on a pro rata basis to all shareholders; 3. alteration of the Company's name or its registered office; 4. amendments to the Company's Articles of Association to the extent that such amendments adversely impact on the PDCT's rights as a shareholder (including any amendments to the articles relating to Partnership Directors); 5. the disapplication of pre-emption rights; and 6. any forced transfer of PDCT's shares (unless such transfer is required as a matter of law).
Why Do We Think This? Part 2 The scope of the consent matters listed in this note may need to be amended in the run up to privatisation in order to reflect regulatory requirements or developments (for example in order to satisfy UKLA/EU Prospectus rules and/or Takeover Panel requirements (if applicable)) or commercial discussions with potential investors. As a responsible partner, the PDCT would provide a commitment that it would not unreasonably withhold or delay any consent and, accordingly, if a matter in respect of which the PDCT had a veto right was being put to shareholders generally the PDCT would decide whether or not to exercise its right of veto at the same time as the matter is put to all shareholders. Furthermore, in recognition of the need for continued and meaningful participation and alignment of interests, (a) the PDCT would be required to retain the securities issued to it at the time of privatisation (the "Initial Securities") for at least so long as it is entitled to the guaranteed payments; and (b) following the expiry of this period, the PDCT would cease to benefit from the additional consent rights referred to above should it dispose of more than half of the Initial Securities.
How do we Stop the Privatisation? Step by Step Now and until 27 th July Make a personal submission to the Minister After 27 th July Agitate, Protest, Write to the DfT, Email the DfT, Email the Prime Minister and other Government Ministers The Government need to know how strongly the People of Dover District feel about the Port of Dover and that it should be owned by its People. Try an email a day, ask your friends and relatives in other parts of the country to email their MPs, The Prime Ministers Office and The DfT as well.
Making a Submission You are the Community, so Concentrate on the Community Criteria Use information from today, from the DHB proposal papers and from the letters and/or handouts that you have received Remember that the DHB proposal has to offer both Enduring AND Significant influence and benefit to the Community Submissions should show that it does not Use Your own words as much as possible Include Your name and address
What is the Process? Will Making a Submission Make a Difference? Decision Minister Examines Evidence Compares against Criteria Examines Submissions Considers all the Evidence Makes Decision DHB Presents and Defends Evidence (its Proposal) Community of Dover District and other stakeholders Act in the role of Prosecutors. Submissions are Cross-examination Of the Evidence.
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