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Court hears case against Crafar's Chinese investor

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Fri, 03 Feb 2012 1:48p.m.

The farms' receiver extended the time for the deal to go unconditional to February 7

The farms' receiver extended the time for the deal to go unconditional to February 7

The Chinese buyer of the Crafar farms lacks the necessary experience and acumen to make such a sensitive purchase, the High Court has been told.

The court in Wellington heard on Friday that the sale of 16 farms owned by the Crafar family to Shanghai Pengxin is still conditional on the buyer being satisfied with the terms of the consent.

The farms' receiver KordaMentha on Thursday extended the time for the deal to go unconditional to February 7.

Two ministers approved the sale after receiving a recommendation from the Overseas Investment Office. The price has not been disclosed but there has been speculation of a $210 million figure.

Alan Galbraith QC, representing New Zealand bidders seeking to overturn the sale, argued the Chinese buyer was a passive investor in an industry in which he had no experience.

Shanghai Pengxin is ultimately controlled by Chinese businessman Jiang Zhaobai.

The involvement of state-owned farm manager Landcorp as a manager of the farms was fundamental to the recommendation of approval of the application.

Mr Galbraith said the test in the law covering overseas investment requiring buyers to have experience and acumen was personal to the individual buyer otherwise "it is no test at all".

Anyone with lots of money could buy farms in New Zealand and get a manager in. "It could be Microsoft," he said.

"All the applicant ... is bringing to the application is money and the contract with Landcorp," he said.

Mr Galbraith said that the sale of farm land in New Zealand had always been sensitive. It was a privilege for overseas people to own sensitive New Zealand assets.

Justice Forrest Miller said the defence will argue the plaintiffs do not have standing and should not be in court.

He said the plaintiff, in exploring the idea of relevant experience, seemed to imply that those buying dairy farms needed to know one end of a cow from another.

NZN

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Comments

04 Feb 2012 08:38a.m.

aiden wrote:

oh so david you are saying that if you are saying your house you would rather sell it at half price than get the full value? ah no this has nothing to do with unemployment because these farms will continue to be 100% kiwi run and employed. a huge mistake is racists like you who only complain when it is chinese and who are too stupid to realise we NEED foriegn investment of which only 7% of NZ agriculture land is foreign owned. and if you want the truth no real farmers wanted to buy this land because the land is in such bad condition from the previous owner, the bid that was on it was a joke, well under value and we know from previous iwi owned farms in the area they are left in very bad shape, covered in weeds, under producing.

04 Feb 2012 08:27a.m.

Fellowes wrote:

The sale of these lands is a disaster for New Zealand. Selling the land and our assets is the worst possible outcome for the country. The land should be nationalised to protect us against any more sales.

03 Feb 2012 03:41p.m.

David wrote:

this should never be let go through, genuine new Zealanders want to buy these and are being pushed away by the smell of money. little wonder why there is so many unemployed and people struggling. once sold we will never get back, and who knows what their farm practices will be like .. this is a huge mistake ...!!!