The Overseas Investment Office (OIO) says it has started investigating Hong Kong-based Natural Dairy's bid to buy the Crafar portfolio of farms, and hopes to make a recommendation within 2-1/2 months.The OIO completed its preliminary assessment of the app
The Overseas Investment Office (OIO) says it has started investigating Hong Kong-based Natural Dairy's bid to buy the Crafar portfolio of farms, and hopes to make a recommendation within 2-1/2 months.
The OIO completed its preliminary assessment of the application from Natural Dairy (NZ) Holdings on Wednesday and would now begin its assessment proper, it said in a statement today.
Four Crafar companies went into receivership last year owing more than $200 million to PGG Wrightson and banks. They owned 13 dairy farms and three drystock grazing properties in the Waikato, King Country, Bay of Plenty, Wanganui, Taranaki and Rangitikei.
More than 50 parties bid for the farms and the receivers are in negotiations with preferred tenderers.
Natural Dairy's bid has been reported to be as high as $230 million.
The OIO said it generally aimed to make a recommendation to ministers on how to decide an application for consent within 50 working days of the date of registration.
However, there was no statutory timeframe within which a decision must be made.
The OIO would not comment further, citing commercial sensitivity.
Applications are decided by the minister of finance, Bill English, and the minister for land information Maurice Williamson, or their delegates. Mr English has delegated his decision-making powers regarding the Natural Dairy application to MP Kate Wilkinson.
