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- Release Date: 06/07/12 18:38
- Summary: ASSET: SAN: Sanford Limited - Continuous Disclosure
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SAN
06/07/2012 16:38
ASSET
REL: 1638 HRS Sanford Limited
ASSET: SAN: Sanford Limited - Continuous Disclosure
SANFORD LIMITED
SUSTAINABLE SEAFOOD
6 July 2012
PRESS RELEASE
"Sanford exits Pacific oyster business"
Sanford Limited has today concluded an agreement to sell its Pacific oyster
farms in Northland to Aotearoa Fisheries Limited.
In December last year Sanford closed its Kaeo processing plant because of
likely reduced oyster volumes able to be harvested from its farms; an impact
of the virus that killed many of the juvenile oysters.
Despite having confidence that, in the medium term, there is potential to
breed new oysters that have some resilience to this virus, Sanford decided
that it made more sense for it to concentrate on its expanded Greenshell
mussel business, in the shellfish sector.
Sanford and Aotearoa Fisheries are of the view that this sale strengthens
both companies and will assist the aquaculture industry to continue to grow
and prosper.
In total there are 16 farms totalling 128 hectares (6 near Kerikeri, 4 in
Whangaroa Harbour and 6 in Houhora Harbour). The sale includes all relevant
licences, racks, sticks and cages as well as oysters growing on the farms and
vessels and vehicles relevant to the farms.
Discussions continue between the parties over the two remaining Sanford
employees involved in the farming business but if they are not required by
Aotearoa Fisheries Limited Sanford will honour its commitments to them.
Eric Barratt
MANAGING DIRECTOR
021 325 209
Effects on Sanford Limited
1. The Pacific oyster business represented about 1% of Sanford's total
revenue.
2. There will be a loss on the sale of the farms and a likely impairment of
the remaining processing assets which will impact on the second half of the
year ended 30 September 2012 of approximately $2m.
3. Sanford will continue its involvement in the Bluff oyster fishery and the
development of farmed Bluff oysters on its mussel farms in Big Glory Bay,
Stewart Island.
End CA:00224734 For:SAN Type:ASSET Time:2012-07-06 16:38:03
