30 April 2007

FPI sold

Several news stories on Sunday and Monday report that Fishery Products International (FPI) is being sold. The Newfoundland assets are reportedly being sold to an arm of the Penney Group while a secondary processing facility and the American marketing arm are going to Nova Scotia-based High Liner Foods.

A new FPI Act was introduced in the House of Assembly last week, although details of the bill have not disclosed.

A continuous disclosure statement issued by Sanford Limited in mid-April stated:
Proposals to sell all the major assets in (15% owned) Fishery Products International Limited (TSX: FPL) in Canada are under final consideration by the FPL board. If these sales are concluded and approved by the Government of Newfoundland and Labrador the company will have a value well in excess of share trading prices over the last three years. Recent volume sales of shares in the company have occurred at C$15. This is well in excess of our present carrying value of C$7 per share and if this value is realised will result in a one-off gain of approximately NZ$20m.
Bond Papers has previously discussed Sanford Limited and FPI here, here and here.