Media Statement From May Wang And UBNZ Regarding Oio Investigation

7 May 2010

I am not surprised the Overseas Investment Office has announced it will investigate the purchase by UBNZ of four farms previously owned by Crafar family interests. It was probably inevitable given the hysterical, overblown and often incorrect coverage given by some media to the UBNZ/Natural Dairy deal.

I am confident the OIO investigation will prove there was no breach of the act. UBNZ is a company 80% owned by the New Zealand based UBNZ Trustee Ltd and 20% by the Hong Kong based Natural Diary (NZ) Holdings Ltd. As I am a New Zealand citizen and Natural Dairy only has a 20% stake, less than the 25% trigger point for an OIO application, the purchase completely conforms with the Act.

The purchase of these four farms and the remainder of the Crafar linked farms covered by the OIO application involves a mere 25,000 cows out of 5 million in New Zealand, this hardly constitutes a serious threat to the country’s dairy industry.

Unfortunately the investigation poses the risk of slowing down the remainder of the overall deal, which is subject to OIO approval, whereby Natural Dairy would invest up to $1.5 billion in the New Zealand dairy industry. Should this project proceed it still involves less than half a percent of the nation’s milk supply and therefore poses no risk to Fonterra or the dairy industry as a whole.

In fact, the dairy industry and economy will benefit enormously through increased employment and training opportunities, added value export products and considerable tax revenues.

This project can only benefit New Zealand and add investment at time when it is needed.

Some media have made much of my previous business difficulties, which I am working hard to remedy, and are using that as a means of undermining the credibility of Natural Dairy and its plans.

The plain fact is if New Zealand does not welcome the investment it is inevitable the company will take its $1.5 billion to another dairying nation that does want it.

May Wang
UBNZ

ENDS