Tuesday 13th July 2010 |
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Landcorp Farming is out of the running to purchase the 16 Crafar family dairy farms that are in receivership, after KordaMentha announced it was not one of the preferred tenders in bids that closed last Wednesday.
More than 50 offers were submitted on all or parts of the Crafar portfolio, which went into receivership last October owing more than $200 million to Westpac, Rabobank and PGG Wrightson.
Natural Dairy (NZ) Holdings, a Hong Kong-listed investment company which has stated that it wants to use the Crafar farms as the production base for a vertical supply of milk products into China, would now appear to have front running as one of the preferred bidders. Negotiations between those remaining in the purchase race and KordaMentha will continue over the next few days.
Landcorp made a joint bid with Wairakei Pastoral for the properties, which it said would have synergies with some of its other dairy farms. Its chief executive Chris Kelly said Landcorp’s tender was going to be “an opportunistic bid”, but he always expected it to be less than the $200 million that NDH was expecting to offer.
“I’ve always said that if the rumours were correct, ours was significantly below the Chinese bid. Others may have seen more in the farms than we did,” Kelly said.
Natural Dairy has a purchase agreement with the receivers for all 16 farms, but this is conditional on obtaining Overseas Investment Office consent, as well as the receivers not getting a better or more suitable offer.
Businesswire.co.nz
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