Natural Dairy: Herald Story Untrue

13 April 2011

As a Hong Kong listed company Natural Dairy is required to publically announce if it is under any form of investigation by any legal authorities.

The story in the NZ Herald of 13 April that claims “Hong Kong probe into Crafar farm bidder” is completely untrue.

Natural Dairy’s Hong Kong office has received no inquiries into its business from any “authority” in Hong Kong.

The news story is riddled with mistakes and misinformation. It talks of the New Zealand Serious Fraud Office investigation into “land transactions involving Hong Kong-listed company Natural Dairy”. The company is continuing to work the SFO and it should be noted the SFO has stated that Natural Dairy itself is not under investigation (see attached SFO letter to the company).

The article claims Natural Dairy is considering resubmitting a bid for the Crafar farms. The company is not making any such new bid.

It uses the phrase “Frontwoman May Wang”. Ms Wang is not and never was employed by Natural Dairy and is not the company’s “Frontwoman”. The only connection is that Natural Dairy sought to purchase her UBNZ company that was buying the Crafar farms.

There is a reference to “Natural Dairy’s purchase” of four Crafar farms. Natural Dairy never purchased these farms, they were owned by UBNZ.

Mr Jack Chen is described as “one of the company’s backers” who has “admitted being banned as a director for ‘serious breaches’ of securities regulations” in China. Mr Chen, one of a great many investors in Natural Dairy, has admitted nothing of the sort. The issue referred to was part of a commercial dispute and Mr Chen was subsequently exonerated by the police in China (see attached letter and translation).

The story states “questions remain over exactly what happened to money it provided to companies linked to the bankrupt Wang last year.” If the reporter has asked me that question I could have told her all monies lent to Ms Wang’s UBNZ companies were subsequently repaid to Natural Dairy.

There is also the assertion that Natural Dairy owns a dairy factory in Tauranga. Natural Dairy does not own that plant. It has a contract with the owners, NZ Dairy Processing Ltd, to provide it with UHT milk for export.

The reporter concerned seems to have consistently and completely confused utterly different corporate entities when a simple check would have revealed the truth.

The article is correct in stating Natural Dairy is vastly expanding its operations in China. In doing so Natural Dairy is providing jobs, export earnings and taxes for New Zealand. It does not deserve this kind of ill-informed criticism.

Statement from:
Graham Chin
CEO New Zealand
NZ Natural Dairy Ltd

ENDS

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