Rival Crafar group back in court

A rival group wanting to buy the Crafar farms will return to court on Monday, seeking a judicial review of the government's decision to sell the farms to a Chinese company.

Land Information Minister Maurice Williamson and Associate Finance Minister Jonathan Coleman announced on Friday that Milk New Zealand Holdings, a subsidiary of Shanghai Pengxin Group, has been granted approval to buy the land in a deal reported to be worth $210 million.

But a rival consortium, led by businessman Sir Michael Fay, wants the decision overturned by the High Court.

The Crafar Farms Purchase Group made a rival $171.5 million offer in September, but had its bid declined by the farms' receivers, KordaMentha, who called the offer "unacceptable".

It filed papers seeking a judicial review in the High Court in Wellington on Tuesday, and sought directions at a hearing on Thursday, but no orders were made ahead of the government's announcement.

The consortium and Crown will head back to court on Monday afternoon for a phone conference with Justice Forrest Miller.

The Crafar Farms Purchase Group says if its court action succeeds and it takes possession of the farms, it will divide them among its members, who include local farmers, iwi groups and Sir Michael.

It says no member would own more than two farms, and all members are happy for legal restrictions to be placed on the farms' title preventing their subsequent sale to foreigners.