Sanford in trading halt as Ngāi Tahu moves to sell $66m stake

Sanford has gone into a trading halt on the NZX while Ngāi Tahu sells about half its stake in the fishing company.

Ngāi Tahu holds a 19.9% stake in Sanford and plans to sell about 48.2% of its shares – representing 9.6% of Sanford’s issued capital - through an underwritten block trade, Sanford said.

Going on Wednesday’s closing price of $7.42, the stake is worth about $66.6 million.

A trade of 9.6% of Sanford’s ordinary shares is equivalent to 1.3 times the total trading volume of Sanford ordinary shares over the past 12 months, Sanford said.

Ngāi Tahu also advised that the trade would be broadly marketed given the size of the stake being sold and the relatively illiquid market in Sanford’s ordinary shares.

“Specifically, we understand the underwriter appointed by Ngāi Tahu to manage the sale will seek offers of demand from institutional investors and also from eligible retail investors which include retail wealth advisers (and their eligible underlying clients),” Sanford said.

“We have been advised this engagement can only be practically achieved during business hours without materially affecting execution.”

Accordingly, Sanford had requested a trading halt to prevent the risk of a disorderly market in its shares developing.

Sanford said it wanted trading to resume at the market’s opening tomorrow.

The stock has risen by 37% over the past 12 months.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.