Crafar farm deal 'still on cards' despite Wang's bankruptcy

May Wang was at a Natural Dairy meeting on the day she was declared bankrupt. Photo / Greg Bowker

The $200 million Crafar farm deal is still on for Natural Dairy, despite its vice-president being voted off the board and frontwoman May Wang bankrupted over a $22 million debt, the farms' receivers say.

The Hong Kong-listed company held its annual general meeting on Wednesday - attended by May Wang on the day she was bankrupted - where vice-president Graham Chin was let go by the Natural Dairy board after a shareholder revolt.

Chin released a statement before his departure from the board was announced that stated Natural Dairy would not be commenting on the Crafar deal because the company was "studying the issues involved and talking with its legal advisers".

Natural Dairy's New Zealand lawyer Kerry Knight was in Hong Kong and is believed to have attended the meeting.

Knight did not return the Business Herald's calls.

KordaMentha receiver Brendon Gibson said the conditional deal for the Crafar farms remained "on foot", despite Wang's bankruptcy.

The condition is that the deal is sealed with Overseas Investment Office (OIO) approval, which has not been given.

Natural Dairy wants to buy 20 Crafar farms - four are already owned by the UBNZ group and 16 others are pending. Wang is the director and sole shareholder of UBNZ's trustee.

The farms are located across the central and lower North Island and make up about 1 per cent of all New Zealand rural land.

The OIO has determined that the 16 Crafar farms are sensitive New Zealand assets and a foreign investment of more than $100 million requires the body's approval.

Natural Dairy's New Zealand representative in the deal, the UBNZ group, is awaiting approval from the OIO to buy the 16 farms on behalf of Natural Dairy.

UBNZ Asset Holdings, one of four companies in the UBNZ group, will process the deal for Natural Dairy, which owns 20 per cent of the company for advancing it $100 million for the deal.

Natural Dairy is planning to buy the remaining 80 per cent of UBNZ Asset Holdings once the farms have been bought.

This transaction also needs to be approved by the OIO.

The sale and purchase agreement between the companies is being investigated by the Serious Fraud Office (SFO), although no charges have been filed.

SFO fraud and corruption general manager Nick Paterson said the investigation was being conducted as fast as possible.

OIO manager Annelies McClure said the decision to accept or decline UBNZ and Natural Dairy's application would be made by ministers Kate Wilkinson and Maurice Williamson.

She said the ministers needed to consider whether the people at the helm of the companies had appropriate business experience, were of good character and had the "relevant acumen", as required under the Overseas Investment Act.

Despite the SFO investigation, May Wang's bankruptcy, Graham Chin's departure and the mystery around the deal, it seems Natural Dairy is still in place to buy the farms.

Chin is a former National Bank executive who replaced Jack Chen on the board last September.

Another director, whose only practical business experience was a part-time job at McDonald's, was also voted off the board at its annual meeting.

The company has already been through major shake-ups of its board over the past year, including changes of chairman.