Fay and Maori bid $171.5M for Crafar

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Tue, 20 Sep 2011 7:00p.m.

Sir Michael Fay

Sir Michael Fay

A syndicate of local iwi and farmers led by expatriate Michael Fay have lodged a $171.5 million bid for the Crafar family farms.

Fay's group, which had previously signalled an interest in buying nine of the farms, tabled its bid with receiver KordaMentha on Tuesday.

A rival offer from China's Shanghai Pengxin Group may be turned down by the Overseas Investment Office (OIO), which has already rejected a bid from Hong Kong.

"I firmly believe we must keep our competitive advantage for exports and that advantage is in what we do with our land," Fay said in a statement.

"To me that means we must retain New Zealand ownership of our productive land."

Shanghai Pengxin made an offer to buy the Crafar farms in January, saying it plans to spend more than $200 million - some $30 million more than the Fay consortium offer - to acquire and invest in the land.

The OIO knocked back an earlier bid from Hong Kong investment company Natural Dairy (NZ) Holdings.

Shanghai Pengxin has been waiting for an OIO decision since lodging its application in April. Its bid is being closely watched by would-be Chinese investors in New Zealand assets.

The purchase of large farmland by foreigners has been in the government's sights after the Natural Dairy deal emerged last year, prompting the government to review foreign investment rules and ultimately impose stricter controls.

Fay, a controversial figure for his involvement in state asset privatisations including Telecom and New Zealand Rail, said the offer by farmers and iwi isn't subject to OIO approval.

They are hoping to be on the farms before Christmas to get them up to full production for the 2012 season starting in the middle of next year.

NZN

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Comments

21 Sep 2011 07:42a.m.

Consistant wrote:

When the Snakes come out of the wood-work YOU Know is time to run.

20 Sep 2011 10:01p.m.

Gosh wrote:

Good hope it all goes well!

20 Sep 2011 09:55p.m.

Davo wrote:

I was going to say nationalize the lot, but if this helps keep the Chinese away and continues to do so in the long run, then I'm all for it.