New Zealand lawmakers seek to stall China meat firm partnership

New Zealand lawmakers are seeking to stall the sale of a 50-percent stake in New Zealand's biggest meat co-operative to China's biggest meat processor, it emerged Tuesday.

The opposition New Zealand First party on Tuesday called on the government's Overseas Investment Office (OIO), which vets overseas purchases of New Zealand assets, to suspend its deliberation of the sale pending the resolution of complaints lodged with New Zealand authorities.

The deal involves Silver Fern Farms, whose farmer shareholders in October last year voted 82.22 percent in favor of selling a half stake to Shanghai Maling Aquarius Group, which is 38 percent owned by China's Bright Food Group, for 261 million NZ dollars (182.23 million U.S. dollars).

New Zealand First leader Winston Peters said the party had lodged complaints with both the Financial Markets Authority (FMA) and the Companies Office Registries Integrity and Enforcement Team relating to the proposed sale.

"While we cannot go into the specifics, our complaint to the FMA relates to Silver Fern Farms' Notice of Meeting and Shareholder Information Pack issued last September," Peters said in a statement.

"Our complaint to the Companies Office Registries Integrity and Enforcement Team relates to some highly creative interpretations of New Zealand companies law which, if left unchallenged, would seriously compromise shareholder protection," said Peters.

The party would also forward copies of the complaints to the Overseas Investment Office, the Takeovers Panel and the Commerce Commission.

"As we have lodged complaints it is unthinkable that the Overseas Investment Office would greenlight Shanghai Maling's application because these complaints relate to the sale itself," said Peters.

"The issues we highlight are highly serious with implications well beyond Silver Fern Farms."

Silver Fern Farms chairman Rob Hewett said after last year's vote that the partnership would be a defining moment for the business, which would give it unique market access in China.

The deal is still subject to regulatory approvals from the New Zealand and Chinese authorities.