Dunedin-based Skeggs Group has divested itself of most of its
aquaculture interests as it continues to reinvest heavily in
its expanding southern tourism holdings.
It sold the majority of its aquaculture assets to listed
Sanford Ltd in November 2010 for $85 million. At the time, it
retained its Bluff oyster and salmon holdings, but the latter
have just been sold to Malaysian-majority interests for
almost $1 million.
The privately owned 60-year-old Skeggs Group has sold its
Pacifica Salmon Ltd subsidiary company for $950,000 to The
New Zealand King Salmon Co Ltd, a Malaysian majority
shareholder company which this week gained consent from the
Overseas Investment Office for the purchase.
The asset is 5.65ha of freehold land, which includes a salmon
hatchery at Rotherham Rd North, Waiau, north Canterbury, and
the buyers intend to increase production capacity.
It was understood Pacifica Salmon Ltd had two salmon farms in
the Marlborough Sounds and development interests elsewhere.
The New Zealand King Salmon Co is 53% owned by the Malaysian
Tiong family, 45.5% through its public listing and 1.5% by
ING Private Equity Access Ltd of Australia.
The Skeggs family was reported by the National Business
Review to be worth $65 million in 2010 and $85 million in
2011.
The family-owned Southern Discoveries last year bought a 50%
share in Queenstown's Kawarau Jets, and took over the Te
Anau-based coach and tour operation Go Milford and Go
Fiordland's Information Centre, the two-boat Queenstown
Fishing Charters business, a retail store and a cafe and bar.
Skeggs Group managing director David Skeggs could not be
reached for comment yesterday.
Less than a fortnight ago, it was announced Milford Sound's
main harbour would undergo a $6 million upgrade involving the
rebuilding of the 22-year-old breakwater, scheduled to begin
this month.
The Milford Sound Development Authority (MSDA), of which the
Skeggs Group owns 49% , Real Journeys 49% and the Southland
District Council 2%, has approval from the Department of
Conservation and Environment Southland to extend the basin
10m from shore.
The MSDA is a private company responsible for the facilities
and infrastructure at the harbour. The Skeggs Group took a
stake in it in 2008 as part of wider Milford Sound investment
at the time.
In June 2008, Skeggs bought Milford Sound Red Boats from
listed Tourism Holdings Ltd for $17.3 million, including its
high-profile Red Boats passenger service operating in
Milford.
The Milford assets included five day-trip Milford Sound Red
Boats, the Milford Deep Underwater Observatory, the Blue Duck
Cafe and the 49% shareholding in the MSDA.
In the late-2010 Sanford deal, which had Commerce Commission
clearance, the assets subsidiary companies of the Skeggs
Group sold to Sanford included more than 70 marine farms, 10
vessels, properties in the Marlborough Sounds and
Christchurch and processing facilities.
The deal covered 100% of the mussel, Pacific oyster and
associated processing assets of Skeggs subsidiary Pacifica
Seafood Ltd's greenshell mussel and Pacific oyster
businesses, but excluded Skeggs Group's salmon assets.
At the time, Skeggs Group managing director David Skeggs said
up to 49.9% of all aquaculture assets were being considered
for sale, but it was decided to sell 100% of the mussel and
Pacific oyster assets.
Skeggs Group retained Pacific Seafoods (Dunedin) Ltd, which
harvests and processes Bluff oysters, and Pacific Salmon Ltd.
The Skeggs Group retains a widespread portfolio of other
interests, including Pacifica Shipping Ltd, Port Denarau
Marine Ltd in Fiji, Akarua Winery in Bannockburn and tourism
ventures in Milford Sound and Lake Wakatipu, operating under
Southern Discoveries Ltd.
The company's tourism holdings include Southern Discoveries'
interests in the $500,000 Milford Discovery Centre and
Milford Deep Underwater Observatory in Milford Sound.
Before the Sanford aquaculture sale, Skeggs Group had
reported annual turnover of $125 million and employed up to
500 people.
simon.hartley@odt.co.nz
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