The High Court at Auckland has discarded a tender by Chinese-backed UBNZ property Holdings for a ruling that it does not entail Overseas Investment Office sanction to buy 16 farms from the receiver of Crafar Farms.

80% owned by New Zealand-based UBNZ Trustee Ltd and 20% by the Hong Kong-based Natural Dairy (NZ) Holdings Ltd., the Chinese businesswoman May Wang's UBNZ  disagreed saying that it did not need the OIO's permission to buy the farms from KordaMentha.

But Annelies McClure, the OIO manager, said that the OIO measured that approval may be essential.

The natural dairy's plans for the acquisitions in New Zealand anyhow remained unchanged even after the court dismissed the UBNZ application for a ruling.

A spokesman said that "The court's decision does not affect the companies' plans to acquire dairy assets in New Zealand and it will be lodging the relevant OIO applications as intended. Natural Dairy sees no reason to comment further on the court's decision".

A provisional transaction accord with UBNZ has already been signed by the receivers of the 16 Crafar farms, which comprises of a significant deposit.

The farms were previously managed by corporation involved with Frank Crafar, Allan and Beth and were situated in the Waikato, King Country, Bay of Plenty, Wanganui, Taranaki and Rangitikei.