Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Sanford Planning to Sell Majority of Pelagic Business


Sanford Planning to Sell Majority of Pelagic Business to Tauranga Based Family Company

New Zealand seafood company Sanford (SAN) has announced it has a conditional agreement to sell its Tauranga based pelagic business to local company Pelco NZ Ltd.

The assets included are three purse seine fishing vessels, processing equipment and pelagic quota in Fisheries Management Area 1.

The quota sale reduces Sanford’s overall quota holding under New Zealand’s Quota Management System from around 22% to approximately 19% of the total volume available for commercial catch. In value terms, the sale of quota represents 3.75% of the company’s quota book value.

A number of jobs in Tauranga are potentially affected by the transition, but Sanford CEO Volker Kuntzsch says the company is working to minimise the impact on jobs.

“We know that if the assets are transferred, Pelco will be looking to hire staff or contract fishers who can support the business. This is a significant consideration for us, as is our view that Pelco is a well-run family company with values similar to ours. We have dealt with them for many years and have always found them to operate with utmost integrity.”

Pelco founder and Managing Director Andy Rolleston says he is delighted to be potentially expanding Pelco’s business in a way he believes will bring significant benefit to the Bay of Plenty economy and to New Zealand’s commercial fishing industry.

“We are a pelagic focused team and this is a great opportunity for us to grow. If this sale is agreed, we’re confident we’ll be able to do that while fishing sustainably, which is very important to us and Sanford. We have worked with them for many years and know their people well. If the sale is confirmed, we would hope to have positions to offer and would like to be able to welcome former Sanford staff who share our values.”

Mr Kuntzsch says the potential sale is a logical fit with Sanford’s strategy of focusing on value.

“Strategically, we are concentrating on areas that lend themselves to consumer-centric innovation and branding, while Pelco will benefit from economies of scale. We believe that if this deal goes ahead, it will create more value for both companies and New Zealand as a whole. It then frees up capital to allow us to invest in areas that are a stronger strategic fit.”

An announcement confirming the sale or otherwise is expected in a matter of weeks.


***ENDS***

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>


Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>