October 2007 decisionsBank consortium buys ABN AMRO in €71 billion international buyout Merck/Sanofi-Aventis buy Ancare group Private equity takeover for part owner of The Radio Network Fletcher Building’s Laminex Group may buy 50% of Dongwha Patinna NZ Rubicon’s Trees and Technology buys rest of Horizon2 and sells it to ArborGen Impress buys Amcor’s Rocma FCA Orchard fund (50% Australian) buys Eden Business Park for $115 million Australian company buys Float Bar at Auckland’s Princes Wharf Global Forest Partners LP acquires 78,000 ha. Nelson/Marlborough forest estate Changes in shareholding approved in Sirius, owner of Blue Star Print Hong Kong investor acquires 75% of Highview Stud, Waikato
Bank consortium buys ABN AMRO in €71 billion international buyoutRFS Holdings BV, owned 81.39% in Europe, 15.47% in the U.S.A., and 3.11% by “various overseas public”, has approval to acquire ABN AMRO New Zealand Limited as part of the international takeover of the worldwide group, via ABN AMRO Holding NV, for €71 billion. The group “has assets in 53 countries including New Zealand”. ABN was owned in the Netherlands of which 19.27% was by Ing Groep N.V.
According to the OIO,
The Applicant is a special purpose acquisition vehicle owned by a consortium of banks (the Banks) consisting of the Royal Bank of Scotland (RBS), Banco Santander SA (Santander) and Fortis NV and Fortis SA/NV (Fortis). The Banks will acquire via RFS Holdings BV (the Applicant) all of the issued and outstanding ordinary share capital of ABN AMRO Holding N.V. (ABN AMRO). The acquisition will result in the Banks holding interests in ABN AMRO Holding N.V.’s New Zealand subsidiaries.
The Banks intend to organise ABN AMRO into three units containing three businesses and a fourth that will contain shared assets regarded as non-strategic assets. These units will then be transferred to the Banks.
The businesses of ABN AMRO are a good strategic fit with the Banks’ existing operations and will enhance the Banks’ prospects for growth. The acquisition of these businesses will strengthen RBS’s platform for growth outside the UK and reduce its dependency on its UK business.
[Decision number 200720042.] Merck/Sanofi-Aventis buy Ancare groupMerial New Zealand Limited and Merial Limited, owned 50% by Merck & Co Inc. of the U.S.A., and 50% by Sanofi-Aventis of France, have approval to acquire the Ancare Group of Companies, owned in Aotearoa. Ancare supplies animal healthcare products (drenches) internationally.
According to the OIO,
Merial New Zealand Limited and its ultimate parent company Merial Limited proposes to acquire the assets and shares in the Ancare Group of companies. The Ancare Group of companies is a leading supplier of animal healthcare products to the New Zealand market. The Ancare Group consists of companies in New Zealand, Australia, South Africa, Ireland and the United Kingdom.
The vendors are seeking to expand the Ancare business by transferring its expertise and New Zealand success into the larger European, North American and South American markets, with particular focus on ruminants. To achieve a desired market position in one or all of these markets requires a considerable time and capital commitment. Merial is able to provide the international experience, resources and networks to facilitate the expansion of Ancare.
Merial advises that given New Zealand’s position as a key agricultural economy; Merial is seeking to expand its existing presence in the New Zealand animal health market. Merial sees the partnership with leading New Zealand animal health scientists as being beneficial to its business by expanding its presence in New Zealand and expanding its product range that it is able to offer internationally.
The takeover raised concerns among farmers, giving a single company ownership of formerly competing drenches including Ancare’s Genesis, Eclipse and Matrix and Merial’s Eprinex, Ivomec and Triton, the Timaru Herald reported (“Ancare buy-out causes concern”, by Andrew Swallow, 27/10/07, http://www.stuff.co.nz/4251889a6571.html):
Concerns have been raised that the buy-out of New Zealand animal health company Ancare by multinational Merial will remove competition from the drench market… It gives Merial Ancare, as the new operation will be known, an estimated 60% market share of the New Zealand drench market. Merial has also said it will no longer sell product through rural retailers such as PGG Wrightson or CRT.
“We are going to restrict our distribution to veterinary clinics,” confirmed Merial’s Oceania managing director Steve Rochester. Veterinarians were best placed to advise farmers on drench use and that advice was particularly important given the concerns about parasite resistance, he reasoned.
South Canterbury Federated Farmers president David Williams said he was concerned the deal would mean less competition in the drench supply market, and questioned whether the already stretched resources of the rural veterinary industry would really be able to provide that advice...
PGG Wrightson director Craig Norgate echoed Mr Williams’ competition concerns. “It removes competition at the end of the day. From the farmers’ point of view you wouldn’t welcome that.” He said he expected the Commerce Commission would be interested in the deal, as did Mr Williams.
Mr Harvey said the Commerce Commission hadn’t been consulted on the deal because legal advice had been that it wasn’t necessary. “In the bulk of the market there’s heaps of competition,” he said.
However, he acknowledged that at the product innovation end of the drench market the deal would create “some monopoly.”
According to the New Zealand Herald, Merial has operations in more than 150 countries and had sales in 2006 of US$2.2 billion ($2.9 billion), while Ancare had a turnover of over $45 million and employed 73 people around the world (“Merial deal promises Ancare global access”, by Owen Hembry, 25/10/07, http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10471912).
Though part of the deal was that Ancare’s managing director Colin Harvey retains ownership of the research and development division of the company (Ancare Scientific) and the intellectual property of any new products he develops – but with an exclusive arrangement to supply Merial – there must also be concerns how long this arrangement will continue. Merial will, like others before it, be tempted to rationalise its research and development and dispense with local development.
[Decision number 200720043.] Private equity takeover for part owner of The Radio NetworkCC Media Holdings, Inc., owned 50% by Bain Capital Fund IX, L.P., and 50% by Thomas H. Lee Equity Fund VI, L.P., both of the U.S.A., has approval to acquire Clear Channel Communications, Inc. for $317,000,000 which results in the company acquiring 50% of ARN Holdings (NZ) Limited.
ARN Holdings, which is jointly owned with APN News and Media, the owner of the New Zealand Herald and other newspapers and magazines, owns the largest radio network in Aotearoa, The Radio Network Limited. It also owns 11 hectares at Lower Styx Road, Christchurch, Canterbury where it has a transmission station. For details of APN, the powerful and controversial Clear Channel, and the wider context of this takeover, see the paper “News media ownership in New Zealand”, by Bill Rosenberg.
The takeover of Clear Channel Communications was in the U.S.A. and in total US$19.5 billion was paid for it. The $317 million quoted here is presumably for the New Zealand assets. (“Clear Channel Shareholders OK Buyout”, by Elizabeth White, Yahoo Finance, 25 September 2007, http://biz.yahoo.com/ap/070925/clear_channel_buyout.html, accessed 1 October 2007.)
According to the OIO,
Clear Channel’s equity interests include 50% of Australian Radio Network Pty Limited, a joint venture between Clear Channel and APN News and Media Limited, which owns 100% of ARN. ARN owns 100% of The Radio Network Limited which owns and operates over 100 radio stations across New Zealand including Newstalk ZB, Classic Hits and Radio Sport. ARN has assets in New Zealand in excess of $100 million, including a transmission station on sensitive land situated at Lower Styx Road, Christchurch.
CC Media Holdings, Inc. (CC Media) proposes to acquire, through wholly-owned subsidiaries, 100% of the shares of Clear Channel, a United States company listed on the New York Stock Exchange.
The acquisition of Clear Channel by CC Media is a global transaction which incorporates the New Zealand companies of ARN. The Clear Channel’s indirect interest in ARN was not individually considered by the Applicant in making its investment decision with regard to Clear Channel. Clear Channel is a diversified media company that was incorporated in the United States.
The Applicant’s strategy for Clear Channel is to operate the business substantially as it has been operated to date and to support management’s plans for growth. The Applicant will provide high level strategic advice and access to capital resources. The Applicant has no current intention to cause Clear Channel to change their current strategies with respect to ARN or its operations.
The Applicant considers the investment in Clear Channel attractive because it has a strong management team, a leading position in a variety of markets, and long term growth opportunities in its radio and outdoor businesses.
The proposal is likely to result in consequential benefits through the financial and strategic skills that the Applicant will bring to ARN and its subsidiaries.
Refusal would likely adversely affect New Zealand’s image overseas as the assets proposed to be acquired represent a minor part of a wider global transaction.
This implied threat is becoming a regular feature.
It is apparent that the new owners don’t know much about the media but see a financial winner. Any consideration of New Zealand needs “was not individually considered”.
[Decision number 200720056.] Fletcher Building’s Laminex Group may buy 50% of Dongwha Patinna NZLaminex Group (NZ) Limited, a subsidiary of Fletcher Building Ltd, owned 36.08% in Australia, 0.3% by “various overseas persons”, 0.05% in the U.S.A. and 63.57% in Aotearoa, has approval to acquire up to 50% of Dongwha Patinna NZ Limited for $26,000,000. In fact, Laminex will acquire only 20% of the company immediately with rights to a 30% until 2010.
Dongwha Patinna’s assets include 124 hectares at 301 Pioneer Highway/State Highway 1, Gore, Southland, where it has a medium density fibreboard (MDF) manufacturing plant.
Dongwha Patinna’s parent is owned 43.63% by Seung Myung Ho, 8.69% by Seung Eun Ho, 25.84% by the Korean Exchange Bank, and 21.84% by minority shareholders, all of South Korea.
The OIO states:
Fletcher Building Limited, through its wholly owned subsidiary Laminex Group (NZ) Limited will acquire 20% of the shares of Dongwha Patinna NZ Limited. Dongwha Patinna owns and operates the medium density fibreboard (MDF) manufacturing facility situated in Gore. A call option deed will provide Laminex NZ an option to acquire up to a further 30% of the shares of Dongwha Patinna NZ Limited prior to 31 December 2010.
The owner of the Applicant, Fletcher Building Products Limited, will source 80% of its externally sourced domestic requirements for MDF from Dongwha Patinna. As a result, Dongwha Patinna will become the second largest manufacturer of MDF for the domestic market.
The acquisition will provide a secure source of supply of MDF. The New Zealand MDF market is currently very attractive and New Zealand MDF is noted as a high quality product ensuring strong consumer demand within New Zealand.
The Applicant considers Dongwha Patinna to have a strong management team and stable workforce. It considers the MDF plant to be well maintained, with good health and safety records, therefore the proposed investment fits well with Fletcher Building’s major acquisition criteria.
[Decision number 200720057.] Rubicon’s Trees and Technology buys rest of Horizon2 and sells it to ArborGenIn two related decisions,
· Trees & Technology Limited, owned 68% in the U.S.A. and 32% in Aotearoa, has approval to acquire the Horizon2 Partnership and Horizon2 Limited for $10,500,000 (for the 50% it doesn’t already own) from Carter Holt Harvey Genetics Limited, owned by Graeme Richard Hart of Aotearoa [Decision number 200720046]. · ArborGen LLC, owned equally by International Paper Company, MeadWestvaco Corporation and Rubicon Ltd, has approval to acquire Horizon2 from Trees & Technology Limited for $24,626,656. (The OIO gives the ownership of ArborGen as 33.33% each by MeadWestvaco Corporation and International Paper Company, both of the U.S.A., 22.6712% by minority shareholders in the U.S.A., and 10.6688% in Aotearoa.) [Decision number 200720045.]
The acquisitions include:
o 27 hectares at State Highway 12, Kaikohe, North Auckland; o 55 hectares at 14 Iona Road/Old Taupo Road, Tokoroa and 1927 State Highway 30, Te Teko, South Auckland; o 48 hectares at Puha Nursery, Te Karaka, Gisborne; o 27 hectares at 2765 State Highway 63, Wairau Valley and 939 Seaview Road, Seddon, Marlborough; and o 13 hectares at Nelson Nursery, State Highway 6, Spring Grove, Nelson.
o 71 hectares at Old Taupo, Tokoroa, State Highway 1, Campbell Road, Wawa Road, Kinleith Road, Tokoroa; and o 14 hectares at Puha Nursery, Te Karaka, Gisborne.
According to the OIO,
In March 2004, Carter Holt Harvey Limited (CHH) and Rubicon Limited (Rubicon) entered into a joint venture, merging their forestry biotechnology and treestock propagation operations (being CHH’s Carter Holt Harvey Forest Genetics Limited (CHH Forest) and Rubicon’s Trees & Technology (T&T)) into a new venture – Horizon2 Limited (Horizon2). Horizon2 is an incorporated partnership, with T&T and CHH Forest each holding a 50% interest in both the partnership and the incorporated entity.
Horizon2 is a specialist forest biotechnology business and the largest producer of softwood treestocks in Australasia. Horizon2 operates from nurseries situated at Kaikohe, Te Teko, Tokoroa, Gisborne and Nelson in New Zealand and Colac in Australia.
T&T proposes to acquire the 50% of the partnership and 50% of the shares in Horizon 2 that are currently owned by CHH Forest, resulting in T&T owning 100% of Horizon2. Following completion of T&T’s acquisition, it is proposed that ArborGen LLC (ArborGen) will acquire the business and assets of Horizon2 Limited from T&T and Rubicon.
The three ArborGen partners (International Paper Company, MeadWestvaco Corporation and Rubicon) are combining each of their non-genetically enhanced (GE) tree improvement programmes in order to create a global business in this field. Rubicon is proposing to combine the assets and operations of Horizon2 with the other non-GE improvement programmes of the other two partners in ArborGen for this purpose.
Rubicon advises that due to the recent change in ownership of CHH and the sale of the CHH forest estate, the acquisition of the remaining 50% in Horizon2 by Rubicon will enable Rubicon to be in a stronger position to build and develop Horizon2 in accordance with the objectives of the business.
For further details on Horizon2 and its acquisitions and owners, see our commentaries for February 2005 and May 2004. Rubicon is a remnant of the break-up of the Fletcher empire, and International Paper is the former controlling shareholder of CHH, bought out by Graeme Hart. Impress buys Amcor’s Rocma FCAImpress New Zealand Holdings Limited, owned 62.1% in the U.K., 32.78% in the Netherlands, 3.87% in the U.S.A. and 1.25% by “various overseas persons”, has approval to acquire Rocma FCA (NZ) Limited for $16,790,936 from Amcor Packaging (NZ) Limited, owned in Australia by Amcor Limited.
The OIO states:
Impress New Zealand Holdings Limited (Impress) is a wholly owned subsidiary of Impress Group B.V. a global market leader in the consumer metal packaging industry. Its areas of operation include the provision of metal packaging in the markets for food and dairy, paints and coatings and aerosols, primarily in Europe, Asia and the United States of America.
The proposed investment involves the purchase of an established New Zealand food-can and aerosol manufacturing business that is complementary to Impress Group B.V.’s overseas operations. The proposed acquisition of Rocma FCA (NZ) Limited will allow Impress access into the New Zealand market.
[Decision number 200720047.] Orchard fund (50% Australian) buys Eden Business Park for $115 millionOrchard NZ Trustees Limited, owned 50% in Australia by Orchard Commercial Office Fund and managed by Orchard Funds Pty Limited, and 50% in Aotearoa by Orchard NZ Diversified Property Fund and managed by Vantage Corporation Limited, has approval to acquire Eden Business Park at 14-18 Enfield Street and 30-40 Normanby Road, Mt Eden, Auckland, for $115,425,000 from Goodman NZ Holdings (Aust) Pty Limited, owned 63.47% in Australia, 24.59% by “various overseas persons”, 3.11% in the U.K., and 8.83% by Goodman Holdings of Aotearoa.
According to the OIO,
The Orchard NZ Eden Property Fund Trust is an unlisted unit trust. The investment is being undertaken jointly by an Australian based Orchard fund and a New Zealand based Orchard fund. The effect of the investment will be to double the value of Orchard’s New Zealand’s property assets.
The property will be purchased as part of a series of acquisitions of commercial property including office, retail and industrial to achieve a long-term commitment of investment and development in New Zealand. The New Zealand Orchard Group believes this market will perform well over the long term.
The purchase of the property will complement the Applicant’s existing New Zealand property holdings. The property includes retail tenancies, which are a good fit with the existing retail tenancies located at Metro Sky City. It is also consistent with the focus of the Orchard Group’s property arm to provide its investors with regular income combined with capital growth over the longer term.
[Decision number 200720040.] Australian company buys Float Bar at Auckland’s Princes WharfCEA Trading Limited, owned in Australia, has approval to acquire 0.1349 hectares of leasehold at Princes Wharf, 1/37 Quay Street, Auckland for $1,540,000 from Lefties Limited, owned by Paul Hollis and Sharon Hollis of Aotearoa. The land “is or includes the foreshore or seabed”.
The OIO states:
The Applicant is continually looking to add businesses and land to its New Zealand portfolio and approached the vendor in March 2007. The Applicant has made 27 previous investments in licensed premises throughout New Zealand.
The Applicant intends to acquire Float Bar and a leasehold interest in the land to continue to operate a licensed bar. The acquisition of the business is an integral part of the long-term investment of the Applicant in the Auckland region.
The Applicant believes the location of the bar in the Auckland Viaduct is important to the Applicant’s long-term strategy. The Applicant wishes to have “Shooters” branded bars in all of New Zealand’s major centres. The target market for this style of bar fits well with the Viaduct market. The Applicant believes the Viaduct is a long term sustainable location for their activities.
[Decision number 200720039.] Global Forest Partners LP acquires 78,000 ha. Nelson/Marlborough forest estateIn two related decisions, Nelson Forests Limited, an operation of Global Forest Partners LP, takes over the assets of a forestry joint venture that managed 16 blocks totalling almost 78,000 hectares in the Nelson/Marlborough region, of which about 16,000 was owned or leased with the remainder in various forestry rights.
The forestry operation (called here the Nelson Forest Estate) includes Crown Forestry Licences, the Kaituna sawmill, and other non-land assets ancillary to the forestry operation located in the Nelson/Marlborough region, including
According to the OIO, Nelson Forests Ltd is owned 49% in the U.S.A., 17% in the U.K., 10.3% by “various overseas persons”, 9% in Denmark, 4% in Australia, 3.6% in Canada, 3.4% in Sweden, and 3.7% in Aotearoa. As we will see, it is in fact a subsidiary of Global Forest Partners LP, which also controls one of the companies that operated the joint venture, RII New Zealand Forests I Inc.
In the first decision, Nelson Forests Ltd gained approval to acquire for a suppressed amount 49% of the forestry estate from RII New Zealand Forests I Inc [Decision number 200720052].
In the second decision, it gained approval to acquire the remaining 51% from Nelson Forest Products Company and Weyerhaeuser New Zealand Holdings Inc, owned 100% in the U.S.A. by Weyerhauser Company. It also received approval to acquire the management company for the operation (and formal holder of the land, leases and forestry rights), Weyerhaeuser New Zealand Inc. [Decision number 200720053.]
Although the description of the existing and proposed arrangements seem complex, the position appears to be that RII New Zealand Forests I Inc and the huge US forestry corporation Weyerhaeuser had a 49%/51% joint venture to operate the above forestry estate. The joint venture ended in 2006 and Weyerhaeuser wanted to pull out. It couldn’t find anyone else to buy, so RII’s parent, Global Forest Partners LP has set up another entity to take over the entire operation.
The OIO states:
RII New Zealand Forests I, Inc (NZ Forests I), the New Zealand operating subsidiary of a timber fund operated by Global Forest Partners LP (GFP), and Nelson Forest Products Company (NFPC), an indirect operating subsidiary of Weyerhaeuser Company (Weyerhaeuser), a United States of America company listed on the New York Stock Exchange, are parties to the Nelson Forests Joint Venture, and together own a forestry estate and associated Kaituna Sawmill located in the Nelson/Marlborough region.
NZ Forests I holds a 49% interest in the Nelson Forest Estate and NFPC owns a 51% interest. The Nelson Forest Estate is managed by Weyerhaeuser New Zealand Inc. (WNZI), an indirect subsidiary of Weyerhaeuser. The input of GFP in relation to the Nelson Forest Estate is a strategic overview of the business which is provided on a quarterly basis at meetings of the joint venture participants. GFP has no day to day management or operational control of the Nelson Forest Estate.
The assets of the Nelson Forest estate comprise the sensitive land, Crown Forestry Licences and Forestry Rights located in the Nelson/Marlborough region, the WNZI shares, the Kaituna Sawmill and various other non-land assets ancillary to the forest operations. The Forest Estate consists of 16 forest blocks totalling approximately 77,629 gross hectares (67,941 productive hectares), comprising 60,774 hectares of Crown Forestry Licences, 16,174 hectares of freehold land and 681 gross hectares of forestry rights held by WNZI. The Forest Estate is predominantly planted in radiata pine (83%), with a significant area in douglas fir (14%) and the remaining area planted in other merchantable species.
On 30 June 2006, the Nelson Forests Joint Venture ended. At that time Weyerhaeuser and GFP announced their intention to sell the shares and assets and conducted a sale process which ultimately did not result in a sale. Subsequent discussions lead to the Applicant proposing to acquire the Weyerhaeuser interest. The sale is consistent with Weyerhaeuser’s stated goal to focus its international timberland investments in South America.
Nelson Forests Limited (the Applicant) a subsidiary of another fund advised by GFP intends to acquire a 100% interest in the Nelson Forest Estate and 100% of the managing company, WNZI.
GFP’s intended strategy for the Nelson Forest Estate is to maintain significant aspects of the basis under which the Assets have operated to date, particularly in terms of forest management and environmental policies. GFP believes that the acquisition will create strategic business opportunities which will expand and strengthen the Nelson Forest Estate and the New Zealand forestry.
GFP advises that the investment will provide returns to investors and consolidate GFP’s position as a market leader in forestry investment management assisting GFP’s scale and ability to add value to the New Zealand forestry industry. Changes in shareholding approved in Sirius, owner of Blue Star PrintIn four related decisions relating to Sirius NZ Holdco Limited, the holding company for the Blue Star Print Group,
The dollar amounts are not for the full 100% of Sirius NZ Holdco, but for an increase in shareholding, detailed below.
The OIO describes Sirius NZ Holdco as being owned 51.0484% in the U.S.A., 32.68% in Australia, 2.3216% in Singapore, 12.4% in Aotearoa by Thomas Wilton Sturgess, and 1.55% in Aotearoa by minor shareholders.
The OIO states:
Consent was granted on 16 February 2007 for Sirius NZ Finance Co Limited (Sirius Finance) to acquire 100% of the shares in Blue Star Print Group Limited (Blue Star). This consent included the issue of shares in the Sirius Finance to Sirius NZ Holdco Limited (Sirius Holdco). The shares in Sirius Holdco were issued to Castle Harlan Australian Mezzanine Partners Pty Limited as manager for the CHAMP Buyout II Trust and Castle Harlan, Inc. as manager for the CHI II Funds. Blue Star is a company that provides print and marketing communications solutions in New Zealand and Australia.
In regard to the AXA approval, it says:
Axa Capital Asia, LP is an existing investor in Axa Capital Asia Direct L.P. and CHAMP II Worldwide an investor in Sirius Holdco via the CHI II Funds. Axa Capital Asia proposes to increase its investment in Sirius Holdco and acquire shares in Sirius Holdco directly.
For each of the other three, the OIO states that
In order to fund further growth and acquisitions, Sirius Holdco proposes to issue ordinary shares to each of the existing shareholders (refer also [the Castle Harlan and the Castle Harlan Australian Mezzanine Partners Pty Limited applications]) and a new shareholder (refer also [the McMillan Printing Unit Custodian Pty Limited application]). It is advised that in order to further grow and develop the business further share issues may be made to the existing shareholders. Accordingly, the Applicant seeks consent to acquire up to 100% of the shares in Sirius Holdco.
Then for the Castle Harlan approval,
The Applicant will initially increase its holding in Sirius Holdco from 53.5% to 53.6%.
For the Castle Harlan Australian Mezzanine Partners Pty Limited approval,
The Applicant will initially increase its holding in Sirius Holdco from 31.2% to 31.3%.
And finally, for the McMillan Printing Unit Custodian Pty Limited approval
Initially the Applicant proposes to acquire 3.2% of the shares in Sirius Holdco.
It is difficult to reconcile these holdings with the information supplied by the OIO on the existing shareholding of Sirius NZ Holdco, and it is not clear what action AXA has actually taken to increase the shareholding it gained approval for. According to the New Zealand Companies Office records at 24 March 2008, McMillan Printing Unit Custodian Pty Limited had 2.6%, CHAMP BSP I, LLC had 43.4% (the total shareholding with a US address), and Sturgess had 19.1%. A further 4.7% belonged to individuals with an Australian address, and the remainder of the shareholders had addresses in Aotearoa, including 25.3% with Perpetual Trustee Company Ltd, which possibly is holding shares as a nominee for other shareholders. We cannot tell whether AXA has any shareholding and if so how much.
For details of the purchase of Blue Star by Sirius, see our commentary for February 2007. Hong Kong investor acquires 75% of Highview Stud, WaikatoNicola Ming Nga Chu of Hong Kong has approval to acquire up to 75% of Highview Stud Limited, including 119 hectares of leasehold at Kararamea and Gillard Roads, Ngahinapouri, Hamilton, Waikato for $625,001 from Highview International Limited, owned 24.99% in Australia by Michael Raymond Hibbert, and 34% by Brent Stephen Gillovic, 29.29% by The Valan Cohen Foundation, 11.56% by Brian Robert Everett, and 0.1624% by Donald Hamish McIlraith, all of Aotearoa.
Chu received approval to acquire 50% of Highview Stud, for Highview Properties to buy the above land, and for Highview Stud to lease it, in November 2005 (see our commentary for that month for further details). The OIO says Chu is also acquiring 65% of Highview Properties Ltd, though she appeared to already own that in 2005.
The OIO states:
The subject transaction is part of a series of transactions which are part of a proposal whereby Nicola Chu will acquire an interest in the Highview Stud Limited bloodstock business. Nicola Chu proposes to acquire a 65% interest in Highview Properties Limited, and a 75% interest in Highview Stud Limited which leases the land from Highview Properties Limited and operate a bloodstock business and related activities. Both the Applicant and her husband (Peter Yip) have an interest in breeding and racing thoroughbred racehorses and view this acquisition as providing a business base to breed, educate, and pre-train their horses in advance of a racing career in Hong Kong in addition to a traditional stud business.
[Decision number 200720041.] Other rural land sales· In two decisions, Richard Merry Anthony Craddock of the U.K. has gained approval to acquire 9 hectares at 105 Taotaoroa Road, Matamata, Waikato for $1,048,750 from Deryck Gardner Schierning and Julie Anne Schierning of Aotearoa [Decision number 200720054], and 18 hectares at 105b Taotaoroa Road for $843,750 from Christopher Michael Thompson and Vicki Robyn Thompson of Aotearoa [Decision number 200720055]. The OIO states: “The Applicant is a British citizen who currently lives in England. The principle business activities of Mr Craddock are bloodstock breeding and bloodstock consulting. Mr Craddock owned and operated the largest bloodstock advertising agency in Europe, Craddock Advertising/Hyperion Promotions Limited. Mr Craddock has obtained his Long term Business Visa which has been granted upon the basis that his business will be established and operated in New Zealand. Mr Craddock is looking to establish an internationally recognised horse breeding and marketing consultancy business in New Zealand to run alongside a boutique horse breeding operation. Mr Craddock considers that there is a niche within the horse breeding industry in New Zealand, for specialist advertising, marketing and consultancy services. Mr Craddock intends to reside in New Zealand indefinitely. Mr Craddock intends to purchase the land for use as a boutique bloodstock breeding programme and as a base for a bloodstock consultancy business. The land is ideally situated for this, being located in Matamata and in close proximity to New Zealand Bloodstock’s Karaka Sales Centre.” · Michael Towarek and Julita Anna Arent Towarek of the U.K. have approval to acquire 29 hectares at 331 Redwood Valley Road, Redwood Valley, Nelson for $2,100,000 from Robert McLain Smith, Sally Crews Eckstrom Smith and Alain David Swain of Aotearoa. The OIO states: “The primary beneficiaries of the Applicant are Mr and Mrs Towarek. Mrs Towarek has been issued with a New Zealand work visa and permit to work, and is currently living and working in New Zealand as a dental assistant. Mr Towarek has no New Zealand visa or permit and is currently completing his employment obligations in the UK. The Applicants’ dependent daughter is currently residing in New Zealand and attending Henley School in Richmond. Mr and Mrs Towarek wish to complete the purchase of the land through their New Zealand trust, the Towarek Family Trust established in 2007. Mr and Mrs Towarek propose to undertake the overseas investment because they wish to permanently relocate to New Zealand, primarily for lifestyle reasons. The dwelling on the land will be the primary residence of Mr and Mrs Towarek.” [Decision number 200720044.] · Van der Werf Farms Limited, owned in the Netherlands by Sjoerd Tjitte Bonifatius van der Werf as trustee for the van der Werf Trust, has approval to acquire 239 hectares of freehold situated at 363 and 469 Walker Road, Woodlands, Southland for $9,311,078 from D and R Farm Limited, owned by Peter Joseph Wellen of Aotearoa. The OIO states: “Mr van der Werf is the sole director of the company. The company has been established for the purpose of land for dairy farming purposes. Mr van de Werf has been operating a dairy farm operation in Southland on 85.6286 hectares which was granted consent by the Overseas Investment Commission in March 2005. Mr van der Werf sees the acquisition of the relevant land as an opportunity to expand his farming operation and because of the limited opportunities in the Edendale region, he has decided to sell that property. The larger farm will give him greater economies of scale and will enable him to utilize the skills that he has developed to further increase the production on that farm.” See our commentary for March 2005 for further details of the earlier acquisition (which followed others). [Decision number 200720058.] |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary statisticsAll investments Both the gross and net value of investment approved in the year to October 2007 is considerably higher than for the previous October year (net value disregards sales from one overseas investor to another, and discounts part New Zealand ownership of the assets). By far the greatest part of the value of the approvals is for sale from one overseas investor to another.
Investment involving land Gross and net sales of land approved by the OIO during the years to October have fallen considerably in area compared to 2006. Refusals (above) have risen slightly in number and area, and are still a tiny proportion of the total.
Fishing Quota As usual, there was no fishing quota approved for sale this month.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
