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Crafars and receivers reach agreement over Chinese buyer - report


Deal still needs Overseas Investment Office and government approval.

NZPA
Fri, 24 Jun 2011

The Crafar family has reached an agreement with receivers, after a two-year standoff following the collapse of its farming empire.

The receivers have accepted a purchase offer from Shanghai Pengxin, also a Chinese company, and also conditional on OIO consent. The OIO is assessing that application - although the government is likely to have the final say, and may prove shy of making it ahead of the election.

The agreement, reported today, came after receivers had claimed more than $5 million in fees, with legal costs topping $4 million.

Crafar spokesman Vinay Deobhakta said the terms were confidential, but the family was "hugely relieved".

Legal proceedings would now be dropped, he told the newspaper.

The family hoped the agreement meant a Chinese bid for 16 former Crafar farms totalling about 8000 hectares in the North Island, would not go through.

That bid is under consideration by the government.

Receivers KordaMentha took control of the farms in October 2009 after they accumulated debts of more than $200 million with Westpac, Rabobank, PGG Wrightson and PGG Wrightson Finance.

KordaMentha receiver Brendon Gibson yesterday confirmed a settlement had been reached.

Mr Deobhakta said the family had not given up hope the farms might remain in New Zealand hands.

An earlier offer from Hong Kong-based Natural Dairy to buy for around $210m fell through late last year after the Overseas Investment Office said the application failed the "good character" test, and government rejected it.

NZPA
Fri, 24 Jun 2011
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Crafars and receivers reach agreement over Chinese buyer - report
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