Sanford chief executive Peter Reidie says selling the lobster quota will help the company grow its salmon and mussel (pictured) businesses. Photo / Supplied
Sanford chief executive Peter Reidie says selling the lobster quota will help the company grow its salmon and mussel (pictured) businesses. Photo / Supplied
NZX-listed seafood company Sanford says it has sold its spiny rock lobster quota in the southern South Island to Deltop Holdings, a subsidiary of Fiordland Lobster Co, for $49.3 million.
The quota is in Fisheries Management Areas CRA7 (Otago) and CRA8 (Southland).
Sanford's shareholding represented 0.3 per cent of CRA7and 2.3 per cent of CRA8.
The company is also considering the sale of its CRA2 quota holding, which includes the Hauraki Gulf and Bay of Plenty.
This transaction was not considered material, the company said.
Sanford chief executive Peter Reidie said the lobster quota "did not provide the best return on investment" and proceeds from the sale would be reinvested in the business.
"It will ultimately help improve shareholder value by contributing to the significant investment required over the next five years to meet our primary strategic outcomes," he said.
"These include the growth of our salmon and mussel businesses and sustainable investment in wildcatch operations," he said.
