By GEOFF SENESCALL
The Waitangi Fisheries Commission is understood to be looking at financing options which would allow it to buy at least part of Brierley Investments' 50 per cent shareholding in Sealord.
According to market sources, a merchant banking firm has been sounding out brokers on a $100 million capital notes issue on behalf of the commission.
That would finance the purchase of at least half the Brierley stake, which has been widely reported to be worth up to $200 million.
Most likely the commission - which already owns 50 per cent of Sealord and has pre-emptive rights to the sale of the Brierley stake - would look for a partner to buy the balance.
Other financing options are also being investigated in case the appetite for a capital notes issue is not there.
The commission's decision to enter the sale at this stage comes after the Government rocked the process at the 11th hour by barring overseas bidders from owning more than 24.9 per cent of the Nelson-based fishing company.
Despite the setback, Brierley still seems intent on pressing forward with its sale.
But it means that if an overseas party were the successful buyer, then the balance of the Brierley shareholding would have to be placed locally.
Unless the commission stuck up its hand, the most likely tack would be to place the holding with institutions.
However, the commission's decision to enter the fray comes as major upheavals are under way within its organisation.
Maori Affairs Minister Dover Samuels is widely expected to appoint a new board to the commission before the end of the month.
This could force a change of attitude towards the commission buying the Brierley shareholding, further throwing the process into disarray.
The Business Herald understands that, in spite of the uncertainty, three overseas parties are still involved in the sale process, as well as a number of local players, including Sanford and Amatal, which have registered a joint bid for the Sealord holding.
Included among the overseas bidders are thought to be South Africa's largest frozen food company, Irvin & Johnson, and Japanese fishing company Nissui.
The deadline for the sale to take place is June 30.
Sealord is New Zealand's largest fishing company.
While financial details of the asset have not been released, Sealord is believed to have a hefty debt load of around $200 million. Its average annual pre-tax profit over the last four years is about $14 million.
Sealord's corporate costs are thought to be around $20 million.
Wanted: $100m-plus for Sealord holding
AdvertisementAdvertise with NZME.