Sealord suitors biting

By Libby Middlebrook

New Zealand's largest commercial fishing company Sealord looks likely to end up with an overseas partner when Brierley Investments sells its 50 per cent shareholding.

Sealord controls a large share of fishing quota, making a takeover by any other New Zealand fishing industry players a matter for Commerce Commission scrutiny.

It is also understood that Sealord would prefer an international partner with the ability to widen the company's markets.

Last week Brierley Investments said it wanted to sell its stake in Sealord, which is half-owned by the Waitangi Fisheries Commission.

Sealord had pre interest and tax earnings of $67.9 million in the last June year, and Brierley's stake is estimated to be worth at least $200 million.

Since the present Sealord joint venture was formed in 1993 it has focused on its international operations, which now cover seven countries.

"The company is headquartered in New Zealand, but we're a business that sees its biggest growth internationally," says Phil Lough, chief executive of Sealord.

"We're looking for something that's going to be giving us access to new fishing opportunities, and market opportunities around the world."

It is understood that commercial fishing companies based in Asia, the US, Africa and Norway have expressed interest through Deutsche Bank, which is handling the sale.

Danish fishing company Royal Greenland, which looked at Sealord when Carter Holt Harvey put shareholding up for sale a decade ago, is also understood to be interested.

Foreign investors are not allowed to own more than 24.9 per cent of shares in a quota-owning company, without special dispensation from the Government.

Analysts have identified Sanford and the Talleys/Amalgamated Dairies joint venture fishing company, Amaltal, as possible local buyers. Any bid they may make is likely to attract the Government's competition watchdog, the Commerce Commission.

Sanford chief executive Eric Barratt and Talley's managing director Peter Talley both declined to comment on any possible bids yesterday.

Waitangi Fisheries Commissioner Whaimutu Dewes said the commission did not intend to reduce or increase its shareholding in Sealord.

However, he said it would consider making a bid for Sealord through its right of pre-emption, if it was unhappy with its potential business partner.

"If this process doesn't work from our perspective, in terms of finding a new shareholder, we will have to give it very serious thought."

The sale is expected to be completed by June.