The chairman of Australian dairy company TasFoods, Rob Woolley - which has had its bid to buy the Van Dieman’s Land Company rejected - said he felt “commercially misled” over the decision.
TasFoods, formerly OnCard International, has launched legal action, over its failed bid to takeover Tasmanian dairy giant VDL. It struck a deal to buy the operation, earlier this month.
TasFoods has been granted a interim injunction, in the Supreme Court of Victoria, to restrain the sale to a foreign buyer.
Chairman Rob Woolley said the company’s argument was with the New Zealanders -VDL’s parents the New Plymouth District Council, Taranaki Investment Management Limited (TIML) and Tasmanian Land Company (TLC).
“We have a lot to do, we will be getting opinions on our various legal recourses and be looking, with interest, to the response from New Zealand,” Mr Woolley said.
“Our argument is with the New Zealanders, completely. We are feeling commercially misled, I have been around a long while, I know what’s a deal, and what’s a fair deal.”
Mr Woolley said New Plymouth “took advantage of TasFoods position” and was not honest.
“We had everything lined up and we had satisfied everything.”
He declined to comment on why the TasFoods deal was rejected, or what the successful bidders had offered.
Melbourne investment banker David Williams, of Kidder Williams, said TIML had been trying to sell VDL for at least five years.
“I am not sure it is even a higher bid, if you look at the wording, they are very careful – it is a ‘superior commercial proposal’,” Mr Williams said.
He said the successful bid was likely to offer the entire price for VDL, rather than the cash, scrip and loan deal put up by TasFoods.
The identity of the buyer is subject to a full confidentiality agreement and will not be disclosed until the deal is finalised.
The new agreement is conditional upon Foreign Investment Review Board approval
In its statement to the Supreme Court, TasFoods lawyers said they understood the purchase price offered by the bidder was less than the value of the consideration accepted by TIML.
“Taking into account the share component and current market price of TasFoods shares, (it) was in excess of $280 million,” the statement said.
“In the circumstances, the Company has obtained an interim injunction from the Supreme Court of Victoria restraining TLC, VDL and others from taking any steps to terminate the sale agreement, or to sell the VDL assets until this Wednesday, when the matter is scheduled for a further hearing.”
Mr Woolley said he hoped tomorrow’s hearing would confirm the interim injunction.
TIML chief executive Mike Trousselot comfirmed TLC had received a notice of an interim injunction from OnCard International (ONC)/TasFoods.
"TLC will be seeking to have it removed as soon as possible and reject all ONC argument," he said.
"The New Plymouth District Council (NPDC) position is unchanged.
"NPDC, TIML, and TLC have all acted properly and in good faith at all times, with comprehensive legal advice taken throughout the transaction process."
There had been speculation in Australian media that VDL had been sold to a Chinese company known as New Hope.
Trousselot said the agreement was subject to a confidentiality agreement and he could not reveal who the buyer was at this stage.
"But I can confirm it is not New Hope," he said.
