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Chinese Crafar deal again delayed

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Thu, 02 Feb 2012 9:43p.m.

The Chinese company set to buy the Crafar dairy farms has been given another extension to finalise the purchase (file pic)

The Chinese company set to buy the Crafar dairy farms has been given another extension to finalise the purchase (file pic)

The Chinese company set to buy the Crafar dairy farms has been given another extension to finalise the purchase.

Milk New Zealand Holdings, a subsidiary of Shanghai Pengxin Group, was last week granted approval to buy the 16 farms in a deal reported to be worth $210 million.

Land Information Minister Maurice Williamson and Associate Finance Minister Jonathan Coleman approved the sale, following a recommendation from the Overseas Investment Office (OIO).

The sale was due to go unconditional on Thursday night, after the farms' receivers, KordaMentha, decided on Tuesday to grant an extension to the original January 31 deadline.

KordaMentha said Shanghai Pengxin has been granted a further extension to February 7, for the company to finalise OIO consent conditions.

The extension comes on the eve of a court challenge by a rival group wanting to purchase the farms.

The Crafar Farms Purchase Group, led by businessman Sir Michael Fay, wants the ministers' decision overturned.

The group made a rival $171.5 million offer in September, but had its bid declined by KordaMentha.

It is now seeking a judicial review, with a substantive hearing to take place in the Wellington High Court on Friday.

The Crafar Farms Purchase Group says if its court action succeeds and it takes possession of the farms, it will divide them among its members, who include local farmers, iwi groups and Sir Michael.

NZN

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Comments

14 Feb 2012 09:57p.m.

Anna wrote:

On Tuesday, 7th February in the High Court in Hamilton, the Crafar Farm deal was held up by Elizabeth Mary Lambert, who has purchased the Fee Simple titles. This entitles her to the right of possession and peaceful occupation of the land. The Sale and Purchase agreements were completed with Allan Crafar's signature. Campbell Live attended the Courtcase and were told they were not allowed to film the proceedings inside the Courtroom. Ms. Lambert was interviewed outside by TV3, however, when it went to air, the interview was not shown.

03 Feb 2012 07:51a.m.

Chris wrote:

'Fellowes' - you seem to be a moron. Labour under Clarke and Goff sold 650,000 ha to 'foreigners'. National has sold 49,000 ha. Labour has sold far more land then anyone. You are a moron who does not get their facts right. With socialists idiots like you no wonder Labour lost big time. 70% of our forest are overseas owned. When you sell your house are you going to offer it to a Kiwi bidder even thou an 'Asian' offers 25% more ? Idiots and rednecks like you make me sick. Shearer is now coming across as weak and pathetic and a fence sitter just like Goff - and you voted for him ? Moron.

02 Feb 2012 10:52p.m.

Fellowes wrote:

This sale is very depressing. Who on earth voted for John Key! It is hard to believe.