The New Zealand Court of Appeal this morning released its much awaited decision in relation to the lastest challenge to Chinese company Shanghai Pengxin purchasing the Crafar farms.
It was accepted that Mr Zhaobai Jiang, the principal shareholder, is a highly successful businessman with significant business experience. The issue was his lack of dairy farming experience. Dimissing the appeal, the Court found that the "investor test" had been met on the basis that Shanghai Pengxin was entitled to enter into arrangements with parties who had the lacked industry-specific experience in order to demonstrate that it in turn had the necessary experience to successfully promote the investment.
It is understood that no further challenge was made in Court in relation to whether or not the investment would bring substantial and identifiable benefit to New Zealand.
The way is now clear for Shanghai Pengxin to purchase the Crafar farms.