Natural Dairy says it will delay plans to spend $1.5 billion on additional farms, livestock and a milk processing plant until it secures approval to buy the 16 North Island dairy farms owned by the Crafar family and in receivership.
Company spokesman Bill Ralston said Natural Dairy had enough on its plate securing Overseas Investment Office approval to buy the Crafar farms, and decided planning for a processing plant and further expansion should be delayed.
He did not think it would harm its Overseas Investment Office application as that was based solely on a business case to purchase the 16 farms.
On complet-ing purchase of those farms, the plan was to go back to the market and raise funds for expansion, Mr Ralston said.
He confirmed Natural Dairy had renegotiated its contract with May Wang, who heads UBNZ Assets Holdings, which would be terminated once Natural Dairy completed its takeover of that company.
UBNZ is 80% owned by New Zealand-based UBNZ Trustee and 20% by Natural Dairy. It owns four dairy farms previously owned by wider Crafar family interests.
The New Zealand Herald reported Ms Wang had a deal to supply Natural Dairy with 150 million packets of pasteurised ultra-heat treated milk, and had set up a company, NZ Dairy Processing, and bought a Tauranga property possibly to establish a processing plant.
It also reported Natural Dairy had raised just $137 million for its expansion through bonds which had been converted into shares in Natural Dairy.
