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Rival Crafar group seeks court decision

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Thu, 26 Jan 2012 5:53a.m.

Bayley's Real Estate took this picture of a Crafar farm when they were appointed to oversee the sale in April 2010

Bayley's Real Estate took this picture of a Crafar farm when they were appointed to oversee the sale in April 2010

A consortium of investors, led by investment banker Sir Michael Fay, is headed to court over a Chinese group's bid to buy the Crafar family farms.

Government ministers are expected to announce within days whether Shanghai Pengxin Group is successful in its bid to buy the 16 farms.

Crafar farms must stay in NZ hands - Shearer 

The ministers' decision is based on a recommendation from the Overseas Investment Office (OIO) - which Sir Michael and the so-called Crafar Farms Purchase Group are seeking access to.

The group, which has made a rival bid for the farms, filed papers in the High Court in Wellington yesterday, and a first hearing is expected on this morning.

A spokesman for the group, Alan McDonald, said they were concerned about a lack of transparency around the OIO's involvement in the matter.

The group wants the information made public before Land Information Minister Maurice Williamson and Associate Finance Minister Jonathan Coleman announce their decision on Shanghai Pengxin's bid.

The farms' receivers, KordaMentha, have set a deadline of January 31 for the decision.

Prime Minister John Key said on Wednesday that Cabinet had briefly discussed the OIO recommendation, and the ministers would keep the deadline in mind, and announce their decision publicly.

Fay's group offered $171.5 million for the 16 farms, but KordaMentha rejected the offer as too low.

Pengxin's bid is believed to be around $210 million.

The farms are located in the Waikato, Benneydale in the King Country, Reporoa and Atiamuri, Waverley and Hawera in Taranaki and Bulls in the Manawatu.

NZN

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Comments

27 Jan 2012 06:59p.m.

lakota wrote:

Shame on NZ if we are willing to sell our land to outsiders who would not even contemplate doing the same if it was around the other way, this is our land and should stay in NZ hands. If it is sold to the chinese which I beleive this govt will do we will never get it back.

27 Jan 2012 09:35a.m.

ian wrote:

COME NOW,not fooling any one.Michael Fay would no doubt on sell the farms to any highest bidder, as soon as possible for his best profit. He has done just this, with other NZ assets in the past.The Chinese or any other foreign buyer could LEASE the farms for,say,99yrs but land owner ship remain with NZ [always].

26 Jan 2012 11:43a.m.

David wrote:

Since Michael Fay "took the money and ran" to another country to avoid a Winston Peters witch-hunt, should his bid not also be considered by the IOI as an overseas investment?

26 Jan 2012 09:33a.m.

GooGoo wrote:

There are plenty of crooked people in the system….receive a little payment to an overseas account and everything is good to go…sell everything to Chinese!