VICTORIA (Seychelles): The Government of the Republic of Seychelles announced today that it is entering into negotiations with MW Brands over revised terms for the shareholders' agreement governing the operations of Indian Ocean Tuna Limited (IOT).

Located in the Seychelles International Trade Zone, IOT is the second largest tuna processing and canning plant in the world. In the year ending 31 March 2009, IOT processed almost 66,000 metric tons of tuna and sold 4.6 million statistical cases of tuna cans, mostly to the UK, French and Italian markets. IOT processes primarily tuna of the yellowfin and skipjack varieties, and employs approximately 2,000 people.

The Government of Seychelles controls a 40% equity stake in IOT, with the remaining 60% controlled by MW Brands, a seafood company headquartered in France. Presently, almost the entirety of IOT's output is bought by a subsidiary of MW Brands operating within Seychelles's offshore sector.

The Government expects that the negotiations will result in a revised shareholders' agreement that benefits from increased transparency, a sharper focus on market-based principles, and a better balance between the interests of all shareholders. The Government's overriding aim is to ensure that an appropriate proportion of the value-added generated by Seychelles's fisheries resources is retained within the country.

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. The Government's reform efforts are being supported by the IMF through an Extended Fund Facility, and by lending programmes made available by the World Bank and the African Development Bank.