OIO to approve Pengxin offer second time around

OIO to recommend approving Pengxin Group offer for Crafar farms

This contract pays $1 if the Overseas Investment Office recommends approving the Pengxin Group offer for Crafar farms after reconsidering its advice to the Minister. Otherwise this contract pays $0.


This contract refers to advice from Overseas Investment Office arising from a direction given to it by the Minister on or around 15 February 2012 to reconsider its advice regarding the Pengxin offer for Crafar farms.

This contract will ignore conditions attached to an approval except where:

a) the conditions, in iPredict’s sole opinion, will be manifestly unable to be met and thus have the effect of preventing Pengxin purchasing Crafar farms; and/or

b) the conditions expressly prevent Pengxin having 100% ownership of the Crafar farms specified in its offer

If Pengxin submits a modified offer that has the effect of restarting the OIO approval process and before the OIO gives its reconsidered advice, then this contract will close at $0. If Pengxin submits a modified offer that does not have the effect of restarting the OIO approval process, then this contract will follow the OIO advice to the Minister on the modified offer.

If Pengxin formally withdraws its offer prior to OIO providing advice to the Minister then this contract will close at $0.

This contract is not affected by OIO advice to the Minister before the launch of this contract.

Apparently the OIO expects to give a new recommendation within a few days time, so it's easy (IMO) to predict what they're going to recommend.

This was never actually launched, was it?

Now may be the time to do it, if it is going to be: [www.stuff.co.nz]

On reflection, we think the "unconditional" contracts provide a clearer bright line. This one involves too much risk of a halfway house decision and traders can already trade, in a de facto sense, on the OIO/Ministerial decision.