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Fifty bids received for Crafar farms, Natural Dairy confident its offer is best

Posted in News Updated

KordaMentha, the receiver of 16 Crafar farms in the central North Island, says it has received more than 50 offers for all or parts of the farms but government owned farmer Landcorp is not among the preferred bidders.

(Updates add background on agreement between the receiver and Natural Dairy/UBNZ and comments from Natural Dairy vice chairman Graham Chin).

KordaMentha's Michael Stiassny and Brendon Gibson said they were pleased by the number and strength of the offers for the farm portfolio. The deadline for bids was last week after a public marketing campaign by Bayleys.

The farms, New Zealand's largest family owned dairy business, were put into receivership last October owing over NZ$200 million to Westpac, Rabobank and PGG Wrightson after interest.co.nz revealed animal welfare issues at the farms.

"Over 50 offers were submitted on all or parts of the portfolio from a range of buyers," Stiassny and Gibson said.

"The receivers regrettably advise that although Landcorp was one of the parties that submitted a tender, its offer was not among the preferred tenderers. Negotiations with the preferred tenderers will continue over coming days."

Landcorp said last month it would bid for the farms and raise debt to fund any purchase, but said it would bid less than the "above market" bid from the Chinese backed Natural Dairy/UBNZ group led by businesswoman May Wang.

The receivers have signed a sale and purchase agreement for the farms with UBNZ that is conditional on Overseas Investment Office (OIO) approval and leaves the door open for them to accept a better offer or offers.

Natural Dairy vice chairman Graham Chin responded to the KordaMentha statement by saying he was confident his group's offer was the best deal for the receivers and creditors, as well as for New Zealand in terms of jobs, increased export revenues, tax and overall boost to the agricultural sector.

"Natural Dairy will engage skilled New Zealanders to manage and run these farms,” Chin said.

“People need to keep a sense of proportion. In the last 12 months the OIO has approved the sale of 80,000 hectares of land to foreign interests, our OIO application only relates to the purchase of just 8,615 hectares out of more than 2 million hectares of dairy farmland in New Zealand. It involves only 25,000 cows in a national herd of around 5 million cows.”

He said Natural Dairy was awaiting the OIO and the government ministers decision.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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20 Comments

Yup. Say hello to our new

Yup. Say hello to our new Chinese overlords. 

I reckon Alan Hubbard has

I reckon Alan Hubbard has loaned DonKey and Double Dippers the money to buy the Crafar farms.
 
You heard it here first!! 

'DonKey' any relation to

'DonKey' any relation to ShonKey?

There are other NZ bidders

There are other NZ bidders who have kept there powder dry. As you do. But they are not offering to buy all of the farms which the receiver would prefer. They are also making bids inline with what there bankers consider reasonable.

An agriculture nation, which

An agriculture nation, which never manufactured, even not their daily working equipment for years - and the “sale out” of land and modern slavery just begun.
Mr. Key when are you going to stop our unbalanced economy causing a massive, unhealthy Real Estate industry. When are you going to stop our greedy and megalomaniac (dairy) farming industry, which constantly runs into trouble on many fronts ?
When are you going to stop the current trend, pursuing “Uneconomic Growth” ?
I advise our Prime Minister and the government to do following to avoid more slavery in our country:
Mr. Key it would be far better to travel here in New Zealand visiting producers/ manufacturers talking and create better conditions for Kiwi companies/ exporters.
It would be far better having an economic strategy, placing orders for our infrastructures needs here in New Zealand.
This would create skilled and better paid jobs here in New Zealand. This would bring the skilful and experienced Kiwis back home to set up new businesses and to work in interesting jobs. This would make us less depended from foreign capital/ skill and knowledge. This would increase our national safety/ security. This would help exporters to compete better on international markets. This would increase interaction with other industry sectors science/ education etc. This would lift our profile, working for the next generation, so we can afford an average life standard in a safe environment.

Mr Key you are the wrong person to complain in saying - quote: Prime Minister John Key says he doesn't want New Zealanders to become tenants in their own country as foreign companies seek……….
The former government created that sh.it and you still do.
Prime Minister it is up to you and your government to create conditions, so we are in charge of our own economic, environmental and social destiny - do it !
WK

One thing's for sure. The

One thing's for sure. The receivers clearly aren't in a position where they need to hang around for months waiting for OIO approval for Ms Wangs bid.

exactly and they do not want

exactly and they do not want to run these farms through spring or else they will be in court

 why wouldn't they want to

 why wouldn't they want to run the cows through spring rj?

the potential for the

the potential for the receiver to be involved in animal rights issues.There are those that would like to make this happen

 50 bids for 16 farms  = 3.1

 50 bids for 16 farms  = 3.1 bids per farm...
It seems most likely that most bidders will be looking at one or two properties each rather than trying to buy the whole much at once...  Only two bidders have shown their hand in public and that is for the all the properties...
Korda Mentha have a lot of work to do to work out what the best deal for the clients (the banks) is, but it will come down to speed to settlement, shape of each deal (reps and warranties) and financial health of the preferred bidders...
I think it is more likely that the farms will be sold to a bunch of different owners rather than to just one bidder.  
 

The Govt had no business

The Govt had no business buying farms in the first place, it was just policially expediant. I agree with Boris the wise frog that they it is more likely to sold to a number of different entities. This is a really pivotal moment for our economy which path will we choose?

"Owing over NZ$200 million to

"Owing over NZ$200 million to Westpac, Rabobank and PGG Wrightson"
 
Thought you said they banked with NBNZ RJ?

So the offer from Wang has

So the offer from Wang has gone twang...number 8 never does that...just that nasty HT stuff.

Ivomec, eh,

Re Boris the frogs

Re Boris the frogs statement

Korda Mentha have a lot of work to do to work out what the best deal for the clients (the banks) is, but it will come down to speed to settlement, shape of each deal (reps and warranties) and financial health of the preferred bidders...

Most people with a calculator could do their job Those shiny arsed are just as bad as the banks and weak politicians.

They need to be rounded up and shot.

Why did the past generation go to war for if these empty heads just sell the family silver.

Its a pity our farmers

Its a pity our farmers including the Crafers pushed up the price of land to ridiculous heights uisng debt of course and when this opportunity comes along no one in New Zealand has the horse power to buy them. Why the hell don't we save more money like the chinese ,get away with our fixation on having to buy everything we can and therefore we are in a position to buy our own assets when they become available. New Zealanders as a whole only have themselves to blame when we let the overseas buyers purchase good assets from under our noses.

People in NZ would be able to

People in NZ would be able to buy it, but the idiot receivers have insisted this ALL the farms be sold as one, pricing out most people except for very large corporations, the idiots have almost ensured the farms go off seas.

thats true but it wasnt all

thats true but it wasnt all the farmers and the ones with low debt wouldnt touch these for what they would cost
central plateau is alot different to the waikato

The only thing right in that

The only thing right in that story is how we should be worried about all the other sales as well, shows how much this country is going down the tubes now.
Those idiot receivers that insisted the whole lot be sold as one should be shot, pricing out most other farmers, more or less guaranteeing a lesser price than what they would have got.

 

Agree with all the comments

Agree with all the comments re bizarre decision to offer all farms as one lot, what were they thinking?
How many outfits can come up with the coin to buy the lot? At the required 50%  equity that's a big hill for Kiwi farmers to climb. So instead of, potentially, hundreds of competing buyers we've got one leading bid that is completely politically unacceptable.
Really dumb.