A legal battle over the purchase of the Crafar farms heads back to court on Friday, with a rival group hoping to overturn the sale to a Chinese company.
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).
A rival consortium, led by businessman Sir Michael Fay, wants 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.
It filed papers seeking a judicial review in the High Court in Wellington last month, and sought directions at a subsequent hearing, but no orders were made ahead of the government's announcement.
A substantive hearing on the group's judicial review application will take place in the Wellington High Court today.
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.
The hearing comes just a day after KordaMentha announced a second extension of time for Shanghai Pengxin to finalise the purchase.
The company will have until February 7 to finalise OIO consent conditions.
NZN