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Crafar court decision reserved

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Fri, 03 Feb 2012 9:31p.m.

The High Court has reserved its decision as to whether the right decision was made approving the sale of 16 farms (file pic)

The High Court has reserved its decision as to whether the right decision was made approving the sale of 16 farms (file pic)

The High Court has reserved its decision as to whether the Overseas Investment Office (OIO) made the right decision approving the sale of 16 farms previously owned by the Crafar family to Chinese company Shanghai Pengxin.

Justice Miller hoped to release his decision within two weeks, Radio New Zealand reported.

Milk New Zealand Holdings, a subsidiary of Shanghai Pengxin Group, was last week granted approval to buy the 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 OIO.

A rival consortium, led by businessman Sir Michael Fay, is trying to get the decision overturned by the High Court.

The Crafar Farms Purchase Group made a $171.5 million offer for the farms in September, but had its bid declined by the farms' receivers, KordaMentha, who called the offer unacceptable.

Alan Galbraith, QC, who acts for plaintiffs, told the court on Friday Chinese businessman Jiang Zhaobai, who controls the company, did not have the required experience to run the farms.

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.

Lawyers for the Crown said Mr Jiang was a successful entrepreneur and his company was involved in significant agricultural businesses in South America and China.

The sale 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.

NZN

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03 Feb 2012 11:15p.m.

katrina wrote:

No!! No No No No on so many levels!