High Court to rule on UBNZ's eligibility to buy 16 Crafar farms

Friday 4th June 2010

The High Court is to rule on whether UBNZ Assets Holdings requires Overseas Investment Office approval to buy 16 farms from the receivers of Crafar Farms.

The OIO said it gave evidence to the court in Auckland today supporting its contention that businesswoman May Wang’s UBNZ did require its consent to buy the farms from KordaMentha.

UBNZ plans to two-pronged trannsaction if successful – first acquiring the farms and then allowing 20% owner Natural Dairy to buy the rest of UBNZ. That step still requires approval from the OIO, Natural Dairy said in a statement to the Hong Kong stock exchange this week.

“While court proceedings were not brought against the OIO, we participated as regulator of the Overseas Investment Act,” said manager Annelies McClure. “The OIO considers that consent may be required.”

The High Court has reserved its decision and has indicated it may makes its ruling on June 11.

Businesswire.co.nz

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