Sanford may be eyeing bigger stake in Canada

By PAULA OLIVER

After falling out of the race for a share of Sealord, fishing company Sanford is in a position to make a major purchase - but it may now be overseas.

Sanford was seriously interested in buying part of Brierley Investments' share in Sealord, which has been up for grabs since February. The stake is close to being sold, and it is understood Sanford is not one of the parties involved.

Managing director Eric Barratt maintained his silence on the rumours, and would not be drawn on the possibility that his focus may now have shifted to increasing his company's 15 per cent stake in Canadian company Fishery Products International (FPI).

Sanford took the $26 million share this year, but Newfoundland legislation restricts an investor from holding more than 15 per cent of the publicly listed company.

FPI shareholders have voted to remove the restriction, and the local government has hinted it would agree to break the limit if a specific deal was proposed that was in the best interests of the company.

Removal of the restriction would allow Sanford to take a larger share, and Mr Barratt said he believed there was the opportunity to take more value from the business.

He said it had already returned better results than last year, and had shown interest in New Zealand products.

But complicating the picture is the arrival of two major overseas fishing companies, Icelandic Freezing Plants Corporation and Canadian Clearwater Fine Foods, on to the scene.

Since Sanford took a stake in FPI, the two have also taken a share, making a bidding war likely should the ownership restrictions be eased.

The other two parties had been part of a hostile takeover attempt of FPI earlier this year.

Mr Barratt also said he hoped that a disagreement over Sanford's experimental Antarctic toothfish voyage would soon be settled.

A joint fleet carrying out research fishing for the lucrative catch was arrested upon return to port this year for not complying with tight regulations. Sanford denies any wrongdoing. A court hearing will be held on November 14.

Environmental parties have campaigned strongly against fishing in the Antarctic, but Mr Barratt said a probable new permit was likely to carry only slight changes to last year's.