Sheik's Offer Not Done Deal
Newcastle Herald
Wednesday March 26, 2008
IT could take up to four months for the Federal Government to decide on oil-rich Dubai ruler Sheik Mohammed bin Rashid al-Maktoum's offer to buy the Ingham family's Australian horse racing empire for more than $460 million.
The Foreign Investment Review Board has to approve the deal.Treasurer Wayne Swan declined to comment yesterday.Mr Swan's media spokesman said he would not comment on any proposed or actual cases that could involve the review board.The board's computer website says approval is required if foreign investment involved buying an Australian business that had assets of more than $100 million, conducted business in Australia and its Australian assets were at least 50 per cent of total assets.An application to the board would normally be dealt with in 30 days after statutory documents were received.The board might extend its assessment time by an extra 90 days and had a further 10 days to notify the parties involved.The board's main consideration is whether foreign investment is in Australia's national interest, the website says.The sheik, who is prime minister and vice-president of the United Arab Emirates and the world's biggest racehorse owner, announced the Ingham purchase on Monday.The deal was done through the sheik's Upper Hunter horse stud business, Darley.It encompasses Ingham's 2500-hectare Woodlands Stud at Denman, spelling properties at Cootamundra and Windsor and its entire racing operations at Warwick Farm and Flemington.The business has 230 staff and 1000 horses working under the Woodlands banner. In a statement made at the time of his announcement, the sheik said he was making a long-term commitment to Australian racing.He said he hoped to build on Ingham's success.
© 2008 Newcastle Herald
