Foreign buyer offers 50 per cent stake in VDL dairy giant

AUSTRALIAN investors can have up to 50 per cent financial stake in Van Diemen’s Land Company, the leading bidder to buy Australia’s largest dairy farm says.

AUSTRALIAN investors can have up to 50 per cent financial stake in Van Diemen’s Land Company (VDL), the leading bidder to buy Australia’s largest dairy farm says.

Mr Lu Xianfeng of Moon Lake Investments at the VDL property at Woolnorth. Picture: CHRIS CRERAR

Moon Lake Investments, owned by Chinese billionaire Lu Xianfeng, has made a $280 million binding offer to buy VDL., subject to the approval of the Foreign Investment Review Board (FIRB),

The offer has been accepted by the seller, local government body New Plymouth District Council in New Zealand.

VDL has never been owned by Australians.

However, Mr Lu today said he would welcome the participation of up to 50 per cent by Australasian investors.

Mr Lu said he expected no immediate changes to the current board and management of VDL but over time may seek to appoint more Tasmanian directors.

“Australia has a long history of foreign investment across many industries,” he said.

“I am therefore optimistic of a positive outcome for the FIRB approval process which we are hoping may be finalised by the end of January.

“Let’s not forget that this is what we could term a ‘foreign to foreign’ acquisition.”

Businesswoman and phil­an­thropist Jan Cameron, backed by a group of federal MPs, on Wednesday launched a late bid to buy the dairy proposing to underwrite a deal.

> MORE: MPs RUSH TO OPPOSE FOREIGN SALE OF VDL

Tasmanian Independent MP Andrew Wilkie, Tasmanian Senator Jacqui Lambie, Tasmanian Greens Senator Peter Whish-Wilson, Victorian Independent Senator John Madigan and Independent Senator for South Australia Nick Xenophon have either backed Ms Cameron’s bid or expressed concerns about the dairy being sold to a foreign buyer.

Mr Lu said Moon Lake Investments was committed to investing in VDL to grow the business and increase employment.

“Offers of employment will be made to all existing employees and their existing employment arrangements will be maintained,” he said.

The operation includes 25 dairy farms, 13 at the historic Woolnorth property and another 12 around Circular Head, milking about 19,000 cows.

Mr Lu said he had also agreed to continue to support VDL’s approach to improving trust, access and protection of the Aboriginal cultural heritage across the Woolnorth properties.

“Moon Lake will continue VDL’s work with the Aboriginal community, and will honour the terms of the Memorandum of Understanding, following completion of the transaction.”

Australian company TasFoods, which failed in its $250 million bid in November, is seeking a hearing in the Court of Appeal of the Supreme Court of Victoria, with a trial date planned for February 21.