OIO sends back Natural Dairy Holdings initial application to buy land

Thursday 1st April 2010

The Overseas Investment Office has asked Natural Dairy (NZ) Holdings, the Hong Kong-listed company looking to invest some $1.5 billion of dairy assets including the failed Crafar family assets, for more information about its proposed New Zealand acquisitions.

OIO manager Annalies McClure said the check wasn’t a “substantive assessment of the merits” of the application, rather it was a query as to whether Natural Dairy had provided enough information about its bid.

“Our check of the application shows further information is required and that the correct fee has not been paid,” McClure said in a statement. “It is standard practice for the OIO to perform an initial assessment of the level of information provided with any application and to check the correct fee has been provided.”

Natural Dairy has settled on four farms and is in talks to buy another 24 from UBNZ Asset Holdings, of which it owns 20%, and lodged its application with the OIO last week. It plans to fund its investment in cash and convertible bonds. The company is incorporated in the Cayman Islands and recently changed its name from China Jin Hui Mining Corp.

In a statement to the Hong Kong Stock Exchange, Natural Dairy asked for a waiver from releasing a circular containing further details on the acquisitions and a notice convening a special general meeting of shareholders as “additional time is required for the company to update and finalise the profit and loss statement and valuation of the production lines and the pro forma profit and loss statement and net assets statement on the enlarged group.”

Natural Dairy also said in bold that “shareholders and investors should note that the acquisition is subject to various conditions.”

Businesswire.co.nz

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