Landcorp confirms bid for Crafar farms

The nation's biggest state-owned farmer, Landcorp Farming, has confirmed it is bidding to buy the 16 former Crafar family farms for which a Chinese company, Natural Dairy, has already signed a conditional deal.

Landcorp chief executive Chris Kelly told NZPA the company has had valuations done for the 13 dairy farms and three drystock properties being sold by receivers and will offer a realistic bid.

Bids are due by 4pm on Wednesday.

Chief Executive Chris Kelly told Newstalk ZB that while Landcorp's offer may not match Natural Dairy's, the group will place a "reasonable offer for the farms in the current market conditions".

He said Landcorp has an advantage over Natural Dairy because it is not subject to Overseas Investment Office consent, which means receivers could get a "clean deal earlier" and "wash their hands" of the properties.

"We can go unconditional very quickly and guarantee funding very quickly."

Receiver Michael Stiassny from KordaMentha said last month tenders for the farms had been extended for two weeks to July 7, because the extra time would allow other parties to complete their due diligence checks.

Natural Dairy has had a New Zealand-registered front-company UBNZ sign an agreement with the receivers to buy the Crafar farms, but it is conditional on Overseas Investment Office consent. UBNZ has not yet lodged a current application for the deal.

Landcorp is also expected to require that three farmhouses at Reporoa occupied by Crafar family members are vacant when it takes possession. Family members have refused to quit their former homes, and Beth Crafar, wife of family head Allan Crafar, said last month the family did not intend to leave, but Mr Kelly said vacant possession was the normal practice.

An application by the receivers for an eviction order against the family is expected to be heard later this month.

- NZPA and Newstalk ZB