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Capital Holdings Ltd
Descriptive Data
TypeAgencyDate Range1990-1996DescriptionThe 1989 Local Government Reform Act required all local authorities to review any operations which could run as independent ventures competing in the open market place and decide whether to dispose of them or whether to set them up as separate organisations, essentially run as stand alone businesses. As a result the Council set up Capital Holdings Ltd as a Local Authority Trading Enterprise, or LATE, to manage the commercial operations it wished to be involved in.
Initially these included:
• Capital Dairy Products Ltd Created from the former Milk Department, this was sold to the other major shareholder, Tui Dairy Company, in March 1991.
• Ngauranga Meat Processors Ltd This company was set up in July 1990 to run the WCC abattoir and then sold in 1991.
• Wellington International Airport Ltd This company was established in October 1990 to run all aspects of the Wellington Airport as a profitable business venture. The Council had a 34% shareholding in the company with the other 66% being Government owned. This was sold to Capital City Investments Ltd in 1995.
• Lambton Harbour Overview Ltd [later Lambton Harbour Management] This company was formed to manage the waterfront between the Wellington Railway Station and the Overseas Passenger Terminal. This was sold to Capital City Investments Ltd in 1995.
In the 1991/92 year three more companies were formed and made wholly owned subsidiaries:
• Wellington Cable Car Ltd This was formed to own the trolley bus overhead lines and the Kelburn Cable Car following the deregulation of public transport in July 1991. This was sold to Capital City Investments Ltd in 1995.
• Wellington City Transport Ltd This was created from the former Transport Department on the 30th June 1991. In October 1992 this was sold to Stagecoach Holdings.
• Capital Power This was created from the former Municipal Electricity Department in 1991. At the request of Wellington City Council, Capital Holdings Ltd invited offers for purchase of a minority interest in Capital Power, providing an opportunity to "gain a partner who is able to provide technologies and capabilities for growth in to new areas of endeavour in the energy industry". In December 1994 Capital Energy Ltd was set up and 49% of its shares were sold to TransNewZealand Ltd, which was a subsidiary of TransAlta (Canada), with the Council owning the remaining 51% of shares. The intention was for Capital Energy Ltd to own Capital Holdings Ltd, which owned Capital Power Ltd and its subsidiaries.
On 20 January 1995 Capital City Investments Ltd bought Capital Holdings Ltd’s shareholding in Lambton Harbour Management, Wellington Cable Car Ltd and Wellington International Airport Ltd. This purchase was effective as of 1 January 1995. The Council then sold its shareholding in Capital Holdings Ltd to Capital Energy Ltd. Capital Energy Ltd completed its acquisition of the shares in Capital Holdings Ltd on 20th January 1995.
Capital Holdings Ltd at this point ceased to trade and its sole activity was to own the shares in Capital Power Ltd. Although Capital Power Ltd was a subsidiary of Capital Holdings, Capital Power reported directly to Capital Energy Ltd as if Capital Energy was the holding company of Capital Power. On June 17 1996, Wellington City Council offered to sell the remaining 51% shares of Capital Energy Ltd to TransNewZealand Ltd. This offer was accepted and became effective on the 25th June 1996. After TransNewZealand Ltd owned all the shares in the company a restructure was carried out. Capital Holdings Ltd amalgamated with Capital Energy Ltd, with Capital Energy carrying on as the amalgamated company. This became effective on the 5th August 1996 and saw the end of Capital Holdings Ltd.
Initially these included:
• Capital Dairy Products Ltd Created from the former Milk Department, this was sold to the other major shareholder, Tui Dairy Company, in March 1991.
• Ngauranga Meat Processors Ltd This company was set up in July 1990 to run the WCC abattoir and then sold in 1991.
• Wellington International Airport Ltd This company was established in October 1990 to run all aspects of the Wellington Airport as a profitable business venture. The Council had a 34% shareholding in the company with the other 66% being Government owned. This was sold to Capital City Investments Ltd in 1995.
• Lambton Harbour Overview Ltd [later Lambton Harbour Management] This company was formed to manage the waterfront between the Wellington Railway Station and the Overseas Passenger Terminal. This was sold to Capital City Investments Ltd in 1995.
In the 1991/92 year three more companies were formed and made wholly owned subsidiaries:
• Wellington Cable Car Ltd This was formed to own the trolley bus overhead lines and the Kelburn Cable Car following the deregulation of public transport in July 1991. This was sold to Capital City Investments Ltd in 1995.
• Wellington City Transport Ltd This was created from the former Transport Department on the 30th June 1991. In October 1992 this was sold to Stagecoach Holdings.
• Capital Power This was created from the former Municipal Electricity Department in 1991. At the request of Wellington City Council, Capital Holdings Ltd invited offers for purchase of a minority interest in Capital Power, providing an opportunity to "gain a partner who is able to provide technologies and capabilities for growth in to new areas of endeavour in the energy industry". In December 1994 Capital Energy Ltd was set up and 49% of its shares were sold to TransNewZealand Ltd, which was a subsidiary of TransAlta (Canada), with the Council owning the remaining 51% of shares. The intention was for Capital Energy Ltd to own Capital Holdings Ltd, which owned Capital Power Ltd and its subsidiaries.
On 20 January 1995 Capital City Investments Ltd bought Capital Holdings Ltd’s shareholding in Lambton Harbour Management, Wellington Cable Car Ltd and Wellington International Airport Ltd. This purchase was effective as of 1 January 1995. The Council then sold its shareholding in Capital Holdings Ltd to Capital Energy Ltd. Capital Energy Ltd completed its acquisition of the shares in Capital Holdings Ltd on 20th January 1995.
Capital Holdings Ltd at this point ceased to trade and its sole activity was to own the shares in Capital Power Ltd. Although Capital Power Ltd was a subsidiary of Capital Holdings, Capital Power reported directly to Capital Energy Ltd as if Capital Energy was the holding company of Capital Power. On June 17 1996, Wellington City Council offered to sell the remaining 51% shares of Capital Energy Ltd to TransNewZealand Ltd. This offer was accepted and became effective on the 25th June 1996. After TransNewZealand Ltd owned all the shares in the company a restructure was carried out. Capital Holdings Ltd amalgamated with Capital Energy Ltd, with Capital Energy carrying on as the amalgamated company. This became effective on the 5th August 1996 and saw the end of Capital Holdings Ltd.
Agency or Organisation
Related Agencies
Successor Agency or OrganisationCapital City Investments Ltd
Capital Holdings Ltd. Archives Online, accessed 19/03/2026, https://archivesonline.wcc.govt.nz/nodes/view/7742