A Chinese-owned consortium seems to have survived a challenge from a rival Australian group contesting the purchase of Australia's oldest dairy company, after a judge dismissed an injunction order holding up the sale.
Victorian Supreme Court Justice James Judd on Tuesday dismissed the request of TasFoods Ltd (TFL) for an extension of the injunction, which had temporarily blocked the sale of Van Diemen's Land (VDL) company to the Chinese-backed Moon Lake Investments Pty Ltd.
Moon Lake Investments Pty Ltd, an Australian company, was recently purchased by Chinese businessman Lu Xianfeng.
TFL claims it had reached an agreement -- in principal -- to take over VDL, which has been operating in the state of Tasmania since 1825, for a fee of 181.6 million U.S. dollars.
But VDL's owner, New Zealand's New Plymouth District Council, opted at the last minute to accept a "commercially superior" offer from the Chinese billionaire's group.
New Plymouth Council mayor, Andrew Judd, said the court's decision would allow the local community to capitalize on Moon Lake's bid.
"In accepting the rival offer from Moon Lake Investments, which is (22.8) million (U.S. dollars) higher than the offer from TasFoods, the council is fulfilling its obligation to make decisions that are in the best interests of the ... community," Judd said in a statement published by News Corp on Tuesday.
Lu was jubilant after the court lifted the injunction order so both parties could press on with the finalization of the deal.
"We welcome the court's decision. We are pleased it has been resolved so quickly, and now look forward to preparing for the completion of the sale," he said in a statement on Tuesday.
VDL, the 190-year-old company -- the nation's largest milk supplier operating out of 25 Tasmanian properties -- has never been Australian owned.
Despite the removal of the injunction, the deal will still need to gain approval from Australia's Foreign Investment Review Board before the business officially changes hands.
