'Done deal': Final approval given for Westland Milk sale

  • 18/07/2019

The sale of Westland Milk to Chinese dairy giant Yili has been given final approval after a High Court ruling on Thursday.

Farmer shareholders agreed to the sale of the 82-year old dairy co-operative at a special shareholder meeting in Greymouth this month.

Ninety-three percent voted in favour of the sale to Yili for $588 million.

However the sale was subject to approval from the Overseas Investment Office(OIO) and the High Court.

The OIO approved the sale on Tuesday, and said the application met all the tests required under the Overseas Investment Act. 

The High Court has also granted approval for the deal to proceed.

In its ruling the court said it was satisfied the sale was generally fair and equitable. 

"The Scheme is not dissimilar to other cases where the provisions of the Companies Act have been used in this way," it said.

"Overall the proposal appears in the interests of the shareholders in this particular case. For those reasons the Court is satisfied it is appropriate to make the orders sought in the application."