Shanghai Pengxin makes offer for Crafar Farms

Shanghai-based property, bio-fuel group makes offer for Crafar farms, receivers say

Jan. 27 (BusinessDesk) – The receivers of the Crafar Farms say they’ve accepted an offer for the business from Pengxin International Group, a Shanghai-based diversified investment company with global interests including bio-fuel crops, fisheries, farming and property development.

No details of the proposal to buy the 16 North Island dairy farms, which still requires Overseas Investment Office approval, were given in statements released today. Receiver Brendon Gibson said: “It's by far the best offer we have.”

A statement from Pengxin chairman Jian Zhaobai said the group plans to lodge an application with the OIO by the end of March.

The statement suggests Pengxi wants milk production in New Zealand to supply burgeoning demand in China – the same motive that drove Natural Dairy (NZ) - the Hong Kong-based group whose local partner UBNZ Funds Management failed to get OIO approval and withdrew its offer.

“China, with 1.4 billion people to feed, is already a significant market for New Zealand but offers huge and exciting future potential for mutually beneficial cooperation between the two countries,” Jiang said in the statement.

Pengxi was established in 1997. Its website lists bio-energy businesses in Cambodia, Bolivia and Argentina growing soybean, corn and palm covering some 125,000 hectares.

(BusinessDesk)

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