Landcorp says it will make Crafar offer

Equipment at one of the Crafar farms near Reporoa. Photo / Christine Cornege

State-owned Landcorp intends to make a "realistic" offer for 16 Crafar family dairy farms that are in receivership.

Landcorp chief executive Chris Kelly said he had had the farms valued and Landcorp would be putting in an offer, The Dominion Post reported today.

Landcorp would not be offering the big money Chinese company Natural Dairy was rumoured to have negotiated with receivers KordaMentha, Kelly said.

Natural Dairy, fronted by New Zealand-registered UBNZ, has an agreement with the receivers to buy the Crafar farms, but it is conditional on Overseas Investment Office consent.

A Landcorp offer would also make it a condition of purchase that three farmhouses at Reporoa occupied by Crafar family members were empty.

Beth Crafar, wife of family head Allan Crafar, said last night the family did not intend to leave. She said a court case to hear the receivers' eviction order against the family would be held next month.

Last week receiver Michael Stiassny from KordaMentha said tenders for the Crafar farms had been extended for two weeks to July 7, rather than closing today as previously planned.

Last month the receivers said there was significant interest from a number of well qualified parties in the farms. Last week Mr Stiassny said that pushing out the deadline would allow those parties more time to complete their due diligence checks.

- NZPA