Prime Minister John Key says he's not directly aware of Landcorp’s plans to consider bidding for Crafar Farms, which a Chinese firm wants to buy.

The government-owned farming company earlier said it’s considering whether it might bid for 16 North Island dairy farms which have been in receivership since October.

Hong Kong-based Natural Dairy (NZ) Holdings has already put in a bid for the farms, which may be worth around $100 million.

Landcorp CEO Chris Kelly  says the company is doing due diligence on the farms as it’s motivated by concern for New Zealand's reputation.

He says there’s been no political interference from the government.

The Overseas Investment Office is currently investigating  the Chinese company’s offer. The government will make final decisions on the international bid.

Alan Crafar meantime says he’s still negotiating with other investors to pay off his debts and redeem the farms.