Tuesday, 08 March 2016 12:55

No takeover plans despite OIO fears

Written by Peter Burke

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President of Shanghai Pengxin Investments in New Zealand, Terry Lee.

The president of Shanghai Pengxin Investments in New Zealand, Terry Lee, says the company's future investment in the NZ dairy industry is being thwarted.

Lee says the rules imposed by the Overseas Investment Office (OIO), which approves land purchases by foreigners, need to change and be clearer for investors.

Lee says many people misunderstand Shanghai Pengxin's investment intentions; there is no fear of them taking over the country.

"This is a wrong perception about Shanghai Pengxin. There is no other Chinese company coming to NZ and buying dairy arms and we are quite small in percentage terms compared with other investors from Europe, America and Australia."

Lee says his company is also invested in real estate and hotels in NZ and is keen to build relationships here. The company would expand its interests in dairying or other types of farming if opportunities arose.

"We believe NZ is a modern country with a good legal system and well educated people," Lee says. "I hope in time NZ people will understand more about Pengxin and more about our strategy and our contribution to the local economy and society."

The company's long term strategy is to seek partnerships and joint ventures.

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