The Tasmanian businesswoman, at the heart of a counter bid for the Van Dieman’s Land Company (VDL), has urged the Federal Government to block the sale.
VDL’s New Zealand owners, Taranaki Investment Management Limited (TIML), have reiterated it will be sold to Chinese interests, subject to Foreign Investment Review Board (FIRB) approval.
TIML said it would not entertain the bid by Tasmanian businesswoman, Jan Cameron, for VDL. saying it had accepted the Moon Lake offer.
But Ms Cameron said the ability to block the sale was now “firmly in the hands of our Federal Treasurer, Scott Morrison.
“This is why I have pointedly sought to both meet with the Minister and to clearly point out why this sale needs to be stopped, and federal government intervention is needed,” Ms Cameron said.
“This is an issue of strategic significance for our country.
“Right now we have the chance to buy back Australia’s largest and most productive dairy land. This is crucial not just for our ability to have such a business within Australian ownership, and all the benefits that come with that, but this is a long term issue of food security.
We should be selling the milk products, not selling the farm. This is a once in a lifetime opportunity to buy back VDL.”
Ms Cameron said only Mr Morrison was able to stop the sale.
“It is in Australia’s best interest that he does it and allow Australian bids to be considered,” she said.
The Treasurer’s office has been contacted for a comment.
TIML chief executive Mike Trousselot said Ms Cameron’s offer was “a belated, unsolicited, non-binding conditional expression of interest.’
“It was received well after we had already accepted Moon Lake’s offer, it has no status, and we will not progress the matter further.”
Mr Trousellot said VDL was under contract to Moon Lake, which had a binding unconditional agreement to purchase the business and assets.
“We are supportive of - and committed to - that contract.”
His comments confirmed a statement from Moon Lake owner Lu Chinese investor Lu Xianfeng, who said TIML had told him it would not be progressing Ms Cameron’s offer.
“I am told that the vendors were open to firm offers for all or a part of VDL for up to three years – and, apart from the Moon Lake bid, there has been no other binding offer, either before or after our bid, that covered the farms’ market values,” Mr Xianfeng said.
Moon Lake would also offer local Australian participation of up to 50 per cent, in ownership of VDL, once the acquisition was completed.
Mr Xianfeng said Moon Lake intended to work with the existing management of the dairy assets to achieve continued gains in productivity.
“We are not planning any immediate changes to the current board and management of VDL, our intention, however, is to increase the number of Tasmanian board members,” he said.
VDL currently supplied 100 per cent of the milk produced from the dairy farms to Fonterra, and would continue to do so.
“Moon Lake intends to continue the supply of milk to Fonterra, under the same contractual terms that are in place with VDL.
“We believe increases in productivity will come from investment in nine new dairy farms on existing pasture, not currently used for dairy farms, herd improvements, pasture improvement and better feed utilization and water asset management.”
Tasmanian dairy company TasFoods has also settled its legal dispute with the owners of Van Diemens Land Company over its failed bid to buy the country’s largest dairying property.
In a statement to the ASX, TasFoods announced it had reached a settlement agreement with the current owners of VDL, New Zealand’s New Plymouth District Council.
The settlement will see TasFoods get cash compensation of $1.25 million.
Mr Trousellot said it was pleasing the matter had been settled.
"The litigation has ceased and we're very pleased that we've settled the matter."
The $1.25m equated to the return of TasFoods deposit paid to the council and contributed towards their bid and due diligence costs, Mr Trousselot said.
"The court records show that NPDC and TIML have operated in good faith at all times” he said.
"We won the court case to remove the interlocutory injunction and we were confident we had a very strong case to win an appeal or any other trial."
While the legal action wasn't stalling the sale, it was distracting from the A$280m (NZD $307m) deal, Trousselot said.
"It certainly wasn't making it easier, it was a distraction from the approval process and from all of us focusing on our core business.
A Foreign Investment Review Board decision regarding the sale to Moon Lake was expected to be handed down in early February.
“We have merely received a belated, unsolicited, non-binding conditional expression of interest’,” TIML chief executive Mike Trousselot said. “It was received well after we had already accepted Moon Lake’s offer, it has no status, and we will not progress the matter further.”
Mr Trousellot said VDL was under contract to Moon Lake, which had a binding unconditional agreement to purchase the business and assets. “We are supportive of - and committed to - that contract.”
His comments confirmed a statement from Moon Lake owner Lu Chinese investor Lu Xianfeng, who said TIML had told him it would not be progressing Ms Cameron’s offer.
“I am told that the vendors were open to firm offers for all or a part of VDL for up to three years – and, apart from the Moon Lake bid, there has been no other binding offer, either before or after our bid, that covered the farms’ market values,” Mr Xianfeng said.
Moon Lake would also offer local Australian participation, of up to 50 per cent, in ownership of VDL, once the acquisition was completed.
Mr Xianfeng said Moon Lake intended to work with the existing management of the dairy assets to achieve continued gains in productivity.
“We are not planning any immediate changes to the current board and management of VDL, our intention, however, is to increase the number of Tasmanian board members,” he said.
VDL currently supplied 100 per cent of the milk produced from the dairy farms to Fonterra, and would continue to do so.
“Moon Lake intends to continue the supply of milk to Fonterra, under the same contractual terms that are in place with VDL. “We believe increases in productivity will come from investment in nine new dairy farms on existing pasture, not currently used for dairy farms, herd improvements, pasture improvement and better feed utilization and water asset management.”
Tasmanian dairy company TasFoods has also settled its legal dispute with the owners of Van Diemens Land Company over its failed bid to buy the country’s largest dairying property.
In a statement to the ASX, TasFoods announced it had reached a settlement agreement with the current owners of VDL, TIML and New Zealand’s New Plymouth District Council, .
The settlement will see TasFoods get cash compensation of $1.25 million.
Mr Trousellot said it was pleasing the matter had been settled.
The $1.25m equated to the return of TasFoods deposit paid to the council and contributed towards their bid and due diligence costs, Mr Trousselot said.
"The court records show that NPDC and TIML have operated in good faith at all times” he said."We won the court case to remove the interlocutory injunction and we were confident we had a very strong case to win an appeal or any other trial."
While the legal action wasn't stalling the sale, it was distracting from the A$280m (NZD $307m) deal, Mr Trousselot said.
"It certainly wasn't making it easier, it was a distraction from the approval process and from all of us focusing on our core business.
A FIRB decision on the sale is expected to be handed down, early next month.
