Sanford lands Simunovich for $137m

1.40pm

Listed fishing company Sanford said today it had agreed to buy Simunovich Fisheries Ltd for $137 million.

Sanford said the agreement covered the purchase of most of Simunovich's fishing assets including fishing and scampi quota, vessels, equipment, workshop facilities, and other operational assets.

"Acquisition of some of the fishing and scampi quota is subject to obtaining approvals under the Fisheries Act, and Commerce Act clearance," Sanford said in a statement to the NZX.

Settlement for those assets not subject to clearance would take place today in cash, while settlement for the remaining assets would be made progressively as legal approvals were obtained.

"In the meantime, Sanford will be able to fish the annual catch entitlement from these remaining fishing assets during the 2004/2005 year," the company said.

An appeal challenging Simunovich's valuable scampi quota was lodged with the Catch History Review Committee, administered by the Fisheries Ministry, by Simunovich competitor Barine Developments last month.

Last week Sanford disclosed it had bought 25 per cent of Chinese seafood processing company Weihai Dong Won Foods.

Sanford said the purchase would allow for cheaper processing of goods and gave Sanford a leg into the Chinese market.

The purchases come just months after negotiations for a merger between Sanford and Nelson-based fishing company Sealord fell over.

Sanford shares were 5c higher at $4.40 in early afternoon trade today on the NZX and have traded as low as $4.00 and as high as $5.60 in the last 12 months.

- NZPA