New Crafar farm bidder's application in

File photo

The company leading the bid to purchase the Crafar farms has filed its application with the Overseas Investment Office.

Shanghai-based Pengxin International Group announced in January it was the preferred bidder for the farms, after the government turned down Natural Diary NZ's bid to buy the properties.

The Overseas Investment Office said it aimed to make decisions on high quality, straightforward applications within 50 working days of registration.

The Crafar farms went into receivership more than a year ago owing about $200 million to PGG Wrightson and the banks.

Company spokesman Cedric Allan said in a release the company intended to make a positive contribution to dairying in New Zealand, tapping into New Zealand expertise, and increasing employment, milk production and export earnings, as well as spending in local communities.

For its planned New Zealand dairy industry involvement, Shanghai Pengxin Group has established a fully-owned, Hong Kong based subsidiary, Milk New Zealand Holding Ltd, whose only director will be Jiang Zhaobai, chairman of the Shanghai Pengxin Group.

"Milk New Zealand has this week lodged an application with the Overseas Investment Office for approval to purchase the farms. Capital to fund the purchase of the farms and other related assets will be provided by a shareholder advance from Shanghai Pengxin Group," a statement from the group said.

"The initial commitment, once approval has been received, is an investment of more than $200 million in buying the properties and related assets and upgrading the farms in the first two years."

Receivers for the Crafar farms, KordaMentha, said the group was by far the best offer received for the properties.

"We hope the OIO application receives a successful and timely response so we can proceed with the next steps in the sales process," KordaMentha's Brendon Gibson said.

- NZ HERALD ONLINE