Former Westland Dairy shareholders fighting for $11 million

Author
Newstalk ZB,
Publish Date
Fri, 5 Jul 2019, 2:43PM

Former Westland Dairy shareholders fighting for $11 million

Author
Newstalk ZB,
Publish Date
Fri, 5 Jul 2019, 2:43PM

A group of former Westland Dairy shareholders is fighting for millions they are owed.

Shareholders voted to sell the co-op to Chinese dairy giant Yili yesterday, for $588 million.

Former suppliers says they are owed $11 million from shares not yet paid out.

The group's spokesman, Peter Williams, told Mike Hosking Westland Dairy is hiding from its original pay-back commitment.

“Essentially that debt which is owed to us will transfer as an unsecured credit, interest free to the new Chinese entity until 2023.”

Nearly 94 percent of shareholders voted in favour of the sale to Chinese dairy giant Yili.

Grey District mayor Tony Kokshoorn says it's sad to see the company change hands, but he says the farmers have made the right decision.

Kokshoorn says rather than death by a thousand cuts, they've decided to accept the takeover bid and move on.

The deal now needs approval from the Overseas Investment Office and the High Court to get across the line.

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