Hunt for Sealord buyer begins to pick up pace

By PAULA OLIVER

Changes at the helm of the Treaty of Waitangi Fisheries Commission are understood to have quickened the hunt for a buyer for half of Sealord.

The sale of Brierley Investments' 50 per cent stake in one of the country's largest fishing companies had been moving slowly since a joint bid from the commission and South African frozen food giant Irvin and Johnson was put on the table more than three months ago.

But sources suggest that the Government's revamp of the commission has led to a change of pace in negotiations.

"It's been like a dam bursting," said the source. "Things are moving with renewed momentum, much to the pleasure of all parties."

The source suggested that a deal could be done by the end of next month, if the present pace continued.

Negotiations had been slowed by the need to find a working partner that shared the vision of the commission and approved its plan for the future of the company.

Irvin and Johnson's bid is understood to be one of two from overseas that are considered viable options.

The third potential buyer is a local consortium. This is likely to include Sanford and Amaltal, which is partly owned by the Talleys fishing company.

Sanford managing director Eric Barratt remains tight-lipped on any involvement, as does Talleys managing director Peter Talley.

A third overseas company is understood to be interested in the stake, but its bid is not considered of the same standard as those of the other two overseas bidders.

An analyst suggested that the best fit would be the joint bid involving Sanford, which would offer the country the same benefits as Montana's recent purchase of Corbans. "It gives more strength locally, and the benefit is that New Zealand as a whole becomes a stronger player internationally," said the analyst.

Sanford and Amaltal gained Commerce Commission approval this year for a joint bid to buy the Sealord stake.

But the commission is known to be keen to bring in an overseas partner to help expand the business internationally.

Brierley's asking price is rumoured to be near $220 million, but an analyst suggested this could be difficult to attain because of the toxic algal bloom threatening shellfish farms at the top of the South Island.

Sealord's greenshell mussels are farmed in Marlborough and processed in Nelson.

So far the toxic bloom has not yet reached the farms, but the fisheries industry has expressed concern as the bloom moves closer to the area.