Sharechat Logo

Landcorp in talks to run Crafar Farms

Thursday 12th January 2012

Text too small?

State-owned Landcorp Farming is in talks to operate the Crafar Farms should Shanghai Pengxin Group’s application to the Overseas Investment Office succeed but it has denied a report it would pay $18 million a year in rent.

“The reports are quite untrue – there is no figure yet,” Chris Kelly, Landcorp chief executive, told BusinessDesk. “We are discussing the possibility of running the farms – we had all hoped to have it sorted by now.”

The Chinese company has been waiting almost nine months for an answer to its application to buy the farms, in a deal that is reportedly worth at least $200 million. That would top a rival proposal by a farmer group led by businessman Michael Fay by $30 million.

 Hardie Peni, chairman of the Tiroa E and Te Hape B Trusts which are part of the Fay group, said the $18 million figure was based on a standard share-milking agreement and Landcorp’s own production forecasts. 

“From what we’re hearing Landcorp have negotiated a deal that is the standard 50-50 share-milking deal familiar to the wider dairy industry,” Peni said in a statement. The Landcorp plan would result in a state-owned company paying rent to “Chinese sitting in Shanghai” as “tenants on what was our own New Zealand farm land.” 

The investment banker and a syndicate of local iwi and farmers lodged a $171.5 million bid for the Crafar family farms in September, as a back-up to a rival offer from Shanghai Pengxin being turned down by the OIO.

The purchase of large blocks of farmland by foreigners has been in the government’s sights after the Natural Dairy deal for the Crafar farms emerged in 2010, prompting the government to review foreign investment rules and ultimately impose stricter controls.

(BusinessDesk)

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

POT Financial Results for the year to 30 June 2025
MOVE FY25 Results for the year ended 30 June 2025
BPG - Completion of Retail Offer
Comvita releases results for the year ended 30 June 2025
August 29th Morning Report
Air New Zealand announces 2025 financial result
August 28th Morning Report
VSL - 2025 date of Annual Meeting of shareholders
WIN - Winton announces FY25 Annual Results
Meridian Energy Limited 2025 Full Year Financial Results