After a three-month lag following rejection of its first attempt, Hong Kong-registered company Natural Dairy has confirmed it has lodged a second application with the Overseas Investment Office to secure the Crafar portfolio of farms.The deal, thought to
After a three-month lag following rejection of its first attempt, Hong Kong-registered company Natural Dairy has confirmed it has lodged a second application with the Overseas Investment Office to secure the Crafar portfolio of farms.
The deal, thought to be worth $210 million, was earlier accepted by Crafar dairy farm receivers KordaMentha, subject to OIO approval.
New Zealand-registered company UBNZ, which is 80% owned by Auckland businesswoman May Wang and 20% by Natural Dairy, has reiterated its well publicised desire to create a vertically integrated dairy company.
Previous statements from the company said it had a $1.5 billion investment plan for the New Zealand dairy industry.
In a statement this morning, Natural Dairy vice chairman Graham Chin said as proof of the company’s commitment, it has negotiated a contract to produce and export 150 million packs of UHT milk, using Fonterra-supplied milk and a New Zealand processing operation.
“The company trusts the Overseas Investment Office will now follow a fair and due process given the substantial benefits to all New Zealand from this transaction,” Mr Chin said.
“In reaction to news that Landcorp has decided to lodge a bid for the farms, UBNZ/Natural Dairy is confident [it] offers the best return to creditors of the Crafar farms and it already has a signed sale and purchase agreement for the properties, conditional on gaining OIO approval, which it expects to receive within the next few months.”
The Crafar family enterprises were placed in receivership in October last year owing more than $200 million to its major lenders Westpac and Rabobank.
Meanwhile, the Crafar farms continue to be marketed by Bayleys Real Estate until the end of tomorrow when no further bids will be accepted.
Tomorrow’s deadline was a two-week extension from the original close off.
Natural Dairy’s statement said its investment would have a considerable flow on effect to rural industries and commerce.
“The Natural Dairy plan will, in addition to its current 32 local New Zealand employees, contribute an additional 92 jobs for New Zealanders experienced in farming.”
In addition, the company has pledged to create a $1 million fund for sharemilkers to create additional opportunities, increasing to $5 million in subsequent years.
It was not clear how the fund would work.
UNBZ has already bought four dairy farms without approval from the OIO, which is now investigating if any rules were breached.
