💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Australia's TasFoods seeks to block sale of largest dairy farm operator

Published 23/11/2015, 03:01 pm
© Reuters.  Australia's TasFoods seeks to block sale of largest dairy farm operator
TFL
-

By Colin Packham

SYDNEY, Nov 23 (Reuters) - TasFoods on Monday obtained a temporary injunction blocking the sale of the operator of Australia's largest and oldest dairy farm to overseas investors amid a political backlash against foreign ownership of agricultural assets.

The injunction comes after the owner of the Tasmanian-based Van Diemens Land Company, New Zealand-based New Plymouth District Council, said on Friday it had agreed to sell the dairy firm to an unnamed foreign entity that had given it a "significantly superior" offer than TasFoods.

The terms of the deal were not revealed, but TasFoods, formerly OnCard International Ltd ONC.AX , said it was lower than the around A$280 million ($200.79 million) it had agreed to buy Van Diemens for from New Plymouth.

"The directors consider it an extraordinary decision by the councillors of New Plymouth District Council to have approved the sale of the assets to a foreign investor for less consideration," TasFoods said in a stock exchange filing.

New Plymouth District Council did not immediately respond to requests for comment.

Under the injunction, the sale of Van Diemens is blocked until a further hearing on November 25.

Lawmakers have recently raised concerns about the sale of agricultural assets to foreigners, saying Australia risked losing control over its food security.

This outcry has prompted the foreign investment regulator to block the sale of the Australia's largest cattle ranch to Chinese firms, saying an area the size of South Korea should remain in Australian hands. urn:newsml:reuters.com:*:nL3N13D5F9

Lawmakers have also raised security concerns about last month's deal by the government of the Northern Territory to lease the Port of Darwin to Chinese-owned firm Landbridge.

On Friday, Prime Minister Malcolm Turnbull said his government wanted to standardise foreign investment laws. urn:newsml:reuters.com:*:nL3N13H0DP ($1 = 1.3945 Australian dollars) (Editing by Miral Fahmy)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.