Simunovich-Sanford deal stalled by scampi appeal

By IRENE CHAPPLE


An appeal challenging Auckland company Simunovich Fisheries' valuable scampi quota will prevent it being sold to the company's suitor, listed fishing company Sanford.

The appeal was lodged with the Catch History Review Committee, administered by the Ministry of Fisheries, by Simunovich competitor Barine Developments this month.

Yesterday Sanford managing director Eric Barratt said he had been aware of the appeal during negotiations to buy Simunovich.

Barratt was careful to point out the sale was not yet complete, but said progress was "satisfactory" and that the company was "working towards our original timetable" of settling the deal by October 1.

He would not speculate on the likelihood of the deal being completed.

The negotiations with Simunovich come just months after merger talks with another rival, Nelson-based Sealord, collapsed.

The value of Simunovich Fisheries largely lies in the quota and, while Barratt has not yet disclosed the cost of the proposed purchase, it is greater than 10 per cent of the company's $411 million market capitalisation.

Barratt said Sanford would be able to fish the quota during the 2004/2005 year, pending the appeal, even if it did not own it.

He did not want to comment further as the appeal was subject to a legal challenge from Simunovich.

The spat appears to reopen old sores between Simunovich Fisheries and Barine Developments.

The two are already involved in legal actions.

Simunovich Fisheries is suing TVNZ and others for more than $8 million over claims concerning the scampi fishery.

The suit is centred around allegations from, among others, Barine Developments director Neil Penwarden.

The allegations led to inquiries in Parliament and by the State Service Commission, which cleared Simunovich of any wrongdoing.

Yesterday, Penwarden said he took issue with the methodology of the Simunovich scampi quota.

But when he filed the appeal he was unaware of Sanford's overtures to Simunovich.

Managing director Peter Simunovich was not available.