State House

Office of the President of The Republic of Seychelles

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Improved benefits expected from amended tuna canning factory shareholders agreement

August 20, 2010 -- Seychelles is expected to earn more from tuna canning operation on its territory following amendments to shareholders' agreement.

The government of Seychelles, through SSI (Societe Seychelloise d'investissement) on 13th August 2010  signed a number of important amendments to the Indian Ocean Tuna (IOT) shareholders agreement with MW Brands SAS of France as part of measures geared at improving the benefits to Seychelles of the tuna cannery canning operation at the fishing port in Victoria.

The amended agreement will result in IOT, which operates the factory, making increased payments to both shareholders as a result of improved terms.

Also paramount, according to a joint press release, is the commitment by each shareholder to continue to support the global competitiveness of IOT as well as the government of Seychelles' commitment to preserve and build the strong foundation for the future.

IOT is the second largest tuna processing and canning plant in the world. It is a Seychelles International Trade Zone operation. IOT processes primarily tuna of the yellowfin and skipjack varieties, and employs approximately 2,400 people.

The Government of Seychelles holds a 40% equity stake in IOT through its wholly owned company Societé Seychelloise d'Investissement (SSI), with the remaining 60% controlled and owned by the French MW Brands SAS, with its operational headquarters in Paris, France.

Principal Secretary for Finance Ahmed Afif said that this agreement represents an improvement over the previous agreement.

Vice President Danny Faure who was present at the signing ceremony said that this agreement is timely.

"We look forward to continue our long partnership with MW Brands as we seek to enhance this world class business which should as a consequence enhance economic benefits for Seychelles. GOS recognises the needs for all private companies operating in Seychelles to have economic stability, security and certainty and wishes that Seychelles becomes a top destination for global businesses," he said.

Seychelles is presently implementing a comprehensive economic reform programme aimed at placing the public finances on a sustainable footing, eliminating subsidies and other distortions from the economy, and encouraging private sector-led growth. To achieve these goals the authorities are taking steps to ensure that all public stakes in commercial enterprises are being managed on an efficient and transparent basis.