Between the lines: More than money on hook in BIL's fish deal

Back in February when Brierley Investments put its half share in major fishing company Sealord on the block, its powerbrokers probably didn't think they would still be negotiating nine months later.

But they are, and there's a good chance they wish they weren't.

The sale could see an overseas buyer gain access to a good chunk of the country's fishing quota, and while there are strong signals that the long trawl is drawing to a close, one large obstacle still exists.

BIL and the Treaty of Waitangi Fisheries Commission, which has first option on the stake, are apparently poles apart in their price expectations.

BIL wants close to $200 million, but sources suggest the other side thinks it is dreaming.

Other sources say price is not the sticking point.

Instead, they say, the commission is being pedantic about finding a partner that fits more tightly than a glove and is taking a long time to do it.

Whatever is going on behind the scenes, the fact remains that Brierley's hands are tied by the commission's pre-emptive right on the stake. By all accounts, Maori interests are unlikely to give up the right. Nor do they have to.

So what are the options for BIL?

This year, BIL said it would hold on to the chunk if it could not get the price it wanted, describing it as a "valuable strategic asset."

But given that BIL is moving to sell down its New Zealand assets as soon as it can and present negotiations appear to be moving forward, it seems that it is either trying to find a creative way forward or is slowly giving way on price.

Japanese fishing heavyweight Nissui is the frontrunner to be the commission's partner.

Nissui has already worked in partnership with Sealord to get a hoki product into the Japanese market, and Sealord has leased trawlers from the Japanese company.

But rounding out the complicated environment are political interests, who have already stepped into the transaction once. Back in July the Government decided to stop a sale of the full 50 per cent to a foreign buyer, ruling that only 24.9 per cent could go overseas.

Will it step in again if a deal isn't to its liking? Already NZ First leader Winston Peters has questioned the involvement of Nissui, linking its parent operation to whaling interests. He has also said the commission wanted to borrow money from Nissui to finance its part of the purchase.

So far the Government has not responded. But it is unlikely either party will feel comfortable that a deal has been sealed until the final whistle has been blown.

It is a complicated transaction. But when it comes to the wire, the pressure is on BIL to find an exit so it can better use the funds in Asia, where it is now based.