Foreigners may still hook Sealord stake

By LIBBY MIDDLEBROOK

Two foreign companies are still in the running to take a stake in New Zealand's largest fishing company, Sealord.

After being barred by the Government from buying all of Brierley Investments' 50 per cent stake in the Nelson-based company, two foreign companies have re-registered their interest for the 24.9 per cent stake overseas interests will be allowed to buy.

Only four companies were left in the bidding race for half of Sealord when Finance Minister Michael Cullen and Fisheries Minister Pete Hodgson pulled the plug on all the foreign bids this week.

It is understood that South Africa's largest frozen food company, Irvin & Johnson, and Japanese fishing company Nissui are still keen to climb aboard.

The Government's decision knocked out one other South African fishing company, leaving New Zealand fishing companies Sanford and Amatal - who registered a joint bid for the Sealord holding - as the sole runners.

"We were not satisfied that any of the overseas applications satisfactorily met the required national interest tests," Mr Cullen and Mr Hodgson said in a joint press statement on Monday.

Foreign companies can still buy up to 24.9 per cent of Sealord under the Fisheries Act.

More than 40 companies are understood to have registered their interest when Brierley announced earlier this year that it was looking for a buyer for its Sealord holding, estimated to be worth at least $200 million.

The Waitangi Fisheries Commission, which has a pre-emptive right over the sale of Brierley's stake, owns the remanding 50 per cent of shares.

Several foreign parties, including Nissui and Irvin & Johnson (better known as I & J), are understood to have re-registered their interest despite their potential ownership being limited to 24.9 per cent of shares.

I & J, which could not be reached for comment, is part of the Anglovaal Industries group of companies.

Based in Cape Town, the company employs more than 6500 people throughout South Africa and has turnover of 275 billion Rand (NZ$82 billion for the 1999 year.

Its seafood division is the largest supplier of fresh fish to South Africa, and specialises in deep sea species such as Orange Roughy.

The Japanese company Nissui, which has offices in Nelson, could not be contacted for comment.

Meanwhile, other options ahead for Brierley Investments, which is not likely to sell out its share in Sealord unless it can get a fair price, include splitting the sale between several local and foreign parties.

Brierley chief executive Greg Terry said earlier this week that the company was in no hurry to sell out of arguably its "best performing asset."

In January, the Overseas Investment Commission gave Brierley approval in principal to sell its 50 per cent Sealord holding to a foreign investor.

That approval was subject to whether the new investor complied with national interest tests, which are set out in section 57 of the Fisheries Act.

Approval was to be given or declined before the final bids were due.

Mr Cullen and Mr Hodgson notified the interested foreign parties two hours before final bids were due in on May 5 that their tenders for 100 per cent of Brierley's Sealord would not be accepted.