Japan’s Maruha Nichiro, the largest seafood company in the world by turnover, has bought a minority stake in New Zealand-based fishing company, Sanford in an off-market deal for NZ$25 million (US$17 million), according to Undercurrent News.

 

Avalon Investment Trust, the second largest Sanford shareholder sold 4.4 million shares at $5.70 per share, representing a 10% discount below the current price of $6.35 per share, to Maruha on March 4, according to a shareholder notice filed with the New Zealand Stock Exchange.

 

This deal will make Maruha the third largest shareholder in Sanford, following Amalgamated Dairies, which holds 32.8% and Avalon which now holds 9.2%.

 

In addition, Sanford has placed its Pacific tuna fleet up for sale this past fall, as the price for skipjack tuna fell to a five year low. Skipjack accounts for 5% of Sanford’s NZ$226 million in revenues.

 

At the time, Sanford chief executive, Volker Kuntzsch said, "Continuing unsatisfactory returns driven by low prices and the strict commodity nature of skipjack tuna coupled with ever increasing access costs to the fishery, resulted in the decision to exit this business and offer the vessels for sale," reports Seafood Source.