New Plymouth District Council wants to spend $19.7 million to buy the remaining shares in Tasman Farms, the operator of dairy and pastoral farms in the northwest of Australia’s island state.

The council, which already holds about 77.6% of Tasman, has launched a full takeover offering $1 each for the remaining shares.

Tasman shares last traded at 71 cents on Unlisted. The council’s offer values Tasman at just over $85 million.

New Plymouth District Council’s exposure to the Tasmanian dairy industry took a positive turn during the last financial year with a $566,000 profit following a loss of $8.2 million the previous year.

The council has a 65% stake in Tasman Farms, which owns 98.15% of Van Dieman’s Land Company in Tasmania and operates dairy and pastoral farms in the northwest of Australia’s island state.

Revenue dropped 24% from $36.6 million to $27.8 million in the year to May, 2010 due to falling dairy prices and production decreases linked to adverse weather.