Business. While TasFoods Limited seeks legal action on the failed sale of Van Diemen’s Land Company (VDL), another investor’s bid of $280 million has been accepted.
Moon Lake Investments has made a binding offer, subject to the approval of the Foreign Investment Review Board (FIRB), to acquire all the Tasmanian dairy assets held by Tasmanian Land Company and its related entities, including VDL.
Moon Lake – an Australian company set up as a vehicle to purchase VDL – has paid a non‐refundable deposit of $20 million.
The sole owner of the company is Lu Xianfeng, a Chinese businessman with success across a range of industries and significant business interests in Australia.
Mr Lu is the managing director and executive chairman of ASX listed Kresta Holdings Limited, Australia’s biggest window covering retailer.
The Kresta group, established more than 40 years ago, employs more than 700 people within Australia and New Zealand.
Mr Lu is also the founder and largest shareholder of Ningbo Xianfeng New Material Co, a company listed on the Shenzhen Stock Exchange, China, with a market capitalisation of approximately A$1.52 billion.
In a statement, Mr Lu said he intends to work with the existing management of the Tasmanian dairy assets to seek continued gains in productivity while continuing to supply fresh milk to the local Tasmanian market.
Offers of employment will be made to all current employees and their existing employment arrangements will be maintained.
On November 6, TasFoods entered into an agreement to acquire VDL’s assets in a $250 million deal, however less than two weeks later, it was stated that the conditions of the sale were not fulfilled.
TasFoods obtained an interim injunction from the Supreme Court of Victoria, restraining VDL from terminating the sale agreement or completing the sale of assets until today (Thursday December 3) when the matter is scheduled for a further hearing.