Canadian snip by Sanford

Fishing company Sanford has paid $8.9 million for 5.22 per cent of a listed Canadian seafood company in the midst of a takeover battle.

Sanford says it plans to continue buying shares in Fishery Products International to take its stake to at least 10 per cent. It paid an average of $C8.51 ($11.47), excluding brokerage costs, for each of the shares.

Sanford says it was investigating Fisheries Products as part of its expansion plans when another Canadian company, Neos Seafoods, launched a full takeover bid.

Fisheries Products has 11 onshore processing plants and sales and marketing offices in Canada, the United States and Europe.

The company's harvesting and processing operations include five deep-sea trawlers, five scallop draggers and a shrimp freezer trawler.

"Sanford has for some time and will continue in the future to study expansion opportunities in New Zealand and overseas in the fishing/seafood sectors," the company said in a statement required under Canadian securities legislation.

In Sanford's annual report, out earlier this month, managing director Eric Barratt projected a positive outlook for the company if the currency remained competitive and the global economy stable.

Sanford posted a record full-year profit last month of $53.87 million, more than double last year's $25.62 million.

Sanford's shares were untraded yesterday. They closed at $5.55 on Friday.

- NZPA