South Africa fish firm tests Sealord's waters

By PAULA OLIVER

A twin bid for Brierley Investments' stake in Sealord has been confirmed, further fuelling speculation that a South African frozen food giant wants to enter our waters.

Brierley Investments' NZ general manager Arun Amarsi said that an offer had been made for the 50 per cent holding in Sealord, but would not give details of the bidders.

It is understood the Treaty of Waitangi Fisheries Commission, which already holds the remaining 50 per cent of Sealord, is one of the partners. Irvin and Johnson, South Africa's largest supplier of fish to markets, is rumoured to be the other.

The South African company was one of several foreign firms to put forward an ill-fated offer for the entire 50 per cent stake in May, before the Government barred foreign enterprises from owning more than 24.9 per cent of Sealord.

Since then, the Waitangi commission has been sounding out potential overseas partners to make a joint bid.

It is understood Brierley Investments wants $200 million for its stake in New Zealand's largest commercial fishing company. Market sources indicate that price could prove to be a sticking point for the deal.

Sealord holds 23 per cent of the national fishing quota.

Irvin and Johnson processes, markets and distributes seafood, frozen vegetables and ready-to-eat frozen meals throughout South Africa. It supplies french fries to fast-food chains such as KFC and Wimpy in South Africa, and American seafood restaurant chain Long John Silver.

Employing 6500 people, Irvin and Johnson had turnover of $882 million for the June 1999 year. It has interests in Australia, Monte Carlo, Mozambique, Namibia and other African countries.

Its major shareholder is Anglovaal Industries, a family-owned organisation, with a 69 per cent holding. It also has three black empowerment groups holding a further 20 per cent.

Irvin and Johnson has carried out several exploratory fishing expeditions for orange roughy.

The NZ Federation of Commercial Fishermen had opposed a foreign company owning half of Sealord, but president Peter Jones said the rumoured deal would not affect his group.

"There's nothing to stop them being 24.9 per cent holders, and there are a lot of companies operating that way," he said. "There could be advantages for them, like breaking into new markets, and doing so without tariffs."

He had heard that there were still other interested parties, so it was unlikely to be the only option.

The Waitangi commission has pre-emptive rights over the Brierley stake.

Brierley indicated that if offers did not reach the price it wanted, it would hold on to the Sealord stake, describing it as a "valuable strategic asset."

Mr Amarsi said it was not disappointing to see the sale process stretched out. He could not give a date that the offer would be considered by.

A Japanese firm is rumoured to be still interested in making a bid but market sources indicate that a possible bid from Sanford will not go ahead.