Aotearoa Fisheries – also known as Moana New Zealand – has sought clearance from the Commerce Commission to acquire Sanford’s North Island inshore fishing business.
Under the proposed acquisition, Sanford would lease its North Island inshore fishing quota – specifically its annual catch entitlement – to Moana under a long-term arrangement.
Moana would pay $11 million a year for the first year of the catch entitlement, scaling to $13 million over the next five years, with payment increasing at 1.5 per cent annually.
The company also intends to invest an estimated $5 million to $8 million for two of Sanford’s North Island-based fishing vessels, other fishery equipment and a marine farm.
Sanford CEO Peter Reidie said the company agreed to sell the annual catch entitlement for much of the quota to Moana for at least 10 years.
“We signalled some time ago that we have been looking at ways to turn around this part of our operations,” said Reidie.
The long-term agreement with Moana will enable the company to fish and process inshore species at scale.
“Sanford’s North Island inshore operations represent a relatively small part of our business, but this proposed deal will reduce the negative impact these operations currently have on Sanford’s bottom line,” explained Reidie.
The company has salmon and mussel operations and owns an estimated 20 per cent of New Zealand fisheries, including deepwater and South Island inshore rights.
Reidie said Sanford looked into constructing a new modern site in Auckland but that the cost of redeveloping and relocating the plant would be costly and would not provide an acceptable return. It had also considered working with another industry player or entirely exiting the business.
“This deal includes two of our North Island-based fishing vessels and a selection of our processing equipment,” he continued.
“As a result of the transaction, we also intend to close our processing plant in Auckland, but we are pleased that Moana is keen to offer work to as many of our affected fishers and processing staff as practicable.”
Sanford says the welfare of its staff has been a central consideration in drawing up the agreement with Moana, but the fishery’s interest was also front and centre.
“Moana shares our values around sustainable fishing,” said Reidie.
“We have worked with them on several environmental projects and advances in fishing technology, so we know their emphasis on kaitiakitanga and fishing for the future.”
Steve Tarrant, CEO at Moana, said the company is well positioned to take on additional catch rights and processing volumes, with a proven track record in coastal operations and upgraded facilities built with growth in mind.
“It’s critical we retain industry knowledge and expertise, which is why we support people affected by welcoming them to our Moana whānau where possible,” said Tarrant.
The acquisition depends on clearance from the Commerce Commission, which is anticipated to take about four months.
Moana is a commercial fishing company with several operations, including inshore fishing and oyster and paua harvesting. It also owns half shareholding in Sealord, a commercial fishing company, while Japan’s Nissui Corporation owns the other half.
Sanford is a commercial fishing company with several operations, including inshore, deepwater fishing, and mussel and salmon farming businesses.
