Protection of the public interest continues to be government�s top priority as a potential sale of the Newfoundland and Labrador assets of Fishery Products International (FPI) Limited moves forward. Government has indicated to FPI that it prefers the bid from Ocean Choice International (OCI), and this decision was made following a complete and thorough analysis.

"About one month ago, following the receipt of several bids by FPI for the sale of various assets, the company indicated to government that following a review of all bids, there were two comprehensive proposals that it deemed acceptable, one of which was more attractive to the company based on commercial considerations," said the Honourable Tom Rideout, Minister of Fisheries and Aquaculture. "As a result, government then decided to exercise its own due diligence on both bids to make its own determination as to which transaction would best protect the public�s interest."

Following representation from FPI, government presented a series of questions in writing to both bidders. These included questions related to future operating plans, ownership structures, financing and other considerations that were deemed pertinent. Both companies responded to government�s request.

"After a thorough review of the responses from both companies, it was clear that the OCI proposal best addressed the concerns of government with regards to ensuring that the public interest is protected," said Minister Rideout. "Both are credible companies, but what is best for the province is our primary consideration. Since FPI indicated to us that either bid would be acceptable, we proceeded to notify the company of the results of our review."

Minister Rideout added that FPI itself decided that it would enter into discussions with OCI to attempt to reach an agreement.

"The company indicated yesterday that they will proceed to attempt to negotiate an acceptable deal with OCI," said the minister. "Government will engage with the companies to protect the interests of employees and the future of the plants. I must note that agreement from the Minister of Fisheries and Oceans to transfer FPI�s quotas to the province remains an essential precondition to any transaction. The Provincial Government would then lease the quotas to the operator of the FPI plants.

"FPI initiated this attempt to sell its assets," continued the minister, "and government has the responsibility under the FPI Act to ensure that any transaction is in the best interest of the province. Unless government is convinced that a sale of some or all of FPI�s business units is indeed in the best interests of the province, no such transaction will be brought forth to the legislature for consideration."

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Media contact:
Lori Lee Oates
Director of Communications
Department of Fisheries and Aquaculture
709-729-3733, 690-8403
oatesll@gov.nl.ca

2007 02 15                                                  12:00 p.m.