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Foreign investment in Aotearoa/New Zealand
Overseas Investment Office - May 2014 Decisions
All spelling of geographic and company names is as supplied by the Overseas Investment Office (OIO) unless otherwise it is clear from the context that the source is from elsewhere. Errors are those of the OIO. Information quoted, unless otherwise noted, comes from the Decision Sheets of the Office. Copies of the Decision Sheets can be seen here.
Tiongs Restructures Ownership Of New Zealand King Salmon
Oregon Group Limited, Tiong Family, Malaysia (100%) received approval for the acquisition of rights or interests in 50.88% of the securities of New Zealand King Salmon Investments Limited which owns or controls:
- a freehold interest in 9.2 hectares of land at 367 Pupu Valley Road, Takaka; and
- a freehold interest in 7.8 hectares of land at Beachcroft Road, Tent Burn, Canterbury; and
- a freehold interest in 5.7 hectares of land at Waiau River, Canterbury; and
- a freehold interest in 7.9 hectares of land at Arapawa Island, Marlborough.
Approval was also received for an overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 50.88% of the securities of New Zealand King Salmon Investments Limited, the value of the assets of New Zealand King Salmon Investments Limited and its 25% or more subsidiaries being greater than $100m. The vendor was Evergreen Holdings Limited, Tiong Family, Malaysia (100%); consideration was $50,000,000.The OIO simply states: "The proposal involves a restructuring of the Tiong Group's New Zealand salmon farming interests". See our commentaries for September 1995 and February 1996 regarding Oregon's original purchase of NZ King Salmon, and our September 2009 commentary for details of Evergreen's purchase of 52% of NZ King Salmon from Oregon for $50m.
Back to TopCameron Buys Another 48 Hectares In The Wairarapa
In two separate OIO approvals, T Base 2 Limited, James Francis Cameron, Canada (100%) received approval to expand his Wairarapa empire. Firstly, approval was received to purchase a freehold interest in approximately 6.7 hectares of land at Western Lake Road, South Wairarapa. The vendors were David Rendel Kingston Gascoigne, Patricia Lee Reddy, Peter Grenville Kingston Gascoigne and Anne Jeanette Gascoigne New Zealand (100%). The second parcel of land was a freehold interest in approximately 41.4 hectares of land at 3434 Western Lake Road, South Wairarapa. The vendor was Kiriwai Farm Limited Marlis Klein, New Zealand (100%)
The OIO didn't reveal the consideration for either transaction, citing s(9)(2)(a) and s(9)(2)(b)(ii) of the Official Information Act, while their only comments on the transactions themselves were: "James Cameron and his family intend to reside indefinitely in New Zealand. They are acquiring the land as part of a larger acquisition of land in South Wairarapa which they will use as a residence and working farm". Recent media reports suggest Cameron is planning to open a vegan restaurant in Greytown. However it is access to Lake Pounui which has some locals worried as TVNZ reported (13/2/14).
"Hollywood mogul James Cameron is keeping silent on whether he will keep up a tradition of letting the public have access to a 'very special' lake he owns. The director, whose blockbuster Avatar has strong themes of conservation and resistance to private ownership, bought Lake Pounui in 2012. Concerns over the public's right to have access to the lake have come to light in documents provided under the Official Information Act, which detail Masterton District Councillor and environmentalist Chris Peterson's inquiry in 2012 into whether Mr Cameron would continue to allow access to the lake, south of Featherston.
"Mr Peterson, a former Tararua Forest Park caretaker, deer culler and environmental leader, has taken students to visit the lake with a previous owner's permission, and called it 'very special' and 'iconic, unusual... for the whole Wellington region'. He said the lake, on the eastern slopes of the Rimutaka Range, 90 minutes' drive from Wellington, was unique in the region for being large, unspoiled and dramatically located. 'You really only see lakes surrounded by native bush in South Island forest parks'.
"Lake Pounui was described in a Regional Council report in 2013 as having 'exceptional indigenous biodiversity values'. After Mr Cameron bought it during a series of Wairarapa land purchases worth tens of millions of dollars and totalling more than 1,500 hectares, Mr Peterson was concerned that previous owners' openness to public access might change. He approached the Walking Access Commission, the Government entity in charge of public access to the outdoors. He was told that, as a resident, Cameron was not required to allow public access to Lake Pounui.
"An Overseas Investment Office representative wrote in the documents that, if a prospective landowner intended to reside indefinitely in New Zealand, public access to the land was not a consideration in their application to buy it, just as it would not be for any other resident. An esplanade reserve along the lake's southern shore is owned by South Wairarapa District Council, and the public are allowed on it. However, it is accessible only by crossing Mr Cameron's land.
"Mr Cameron, 59, a Canadian, applied for residency in 2012 under Immigration New Zealand's Investment Plus category, restricted to people investing more than $10 million. There are restrictions on what he can do with the lake, as it is protected under a Queen Elizabeth II National Trust open space covenant, but public access remains at the landowner's discretion. Mr Cameron is giving researchers from GNS Science and Victoria University access to the lake for scientific purposes.
"However, Peterson said this did not constitute allowing public access, 'but rather a very specific group having access'. He called on Mr Cameron to allow anyone to enjoy the lake. 'James Cameron... has a very strong environmental ethic and we need to experience these special places to have a better relationship with that natural world'. He had not contacted him directly, because his main interest had been whether Mr Cameron was under any legal access obligation, but he was now considering doing so.
"Neighbour Denise MacKenzie said previous owners of Lake Pounui allowed her and others to do a four-hour walk through 'special' bush and, while she had not asked, she thought Mr Cameron would be similarly receptive. The Overseas Investment Office has said Mr Cameron, wife Suzy Amis, and their children, Claire, Quinn and Elizabeth Rose, intend to live indefinitely in New Zealand. Law firm Bell Gully, which represents Mr Cameron in New Zealand, said there would be no comment from him 'on private matters'". See our December 2011, February, April and August 2012 and May and June 2013 commentaries for further details of Cameron's earlier Wairarapa purchases.
Back to TopBupa Buys Invercargill Retirement Village
Bupa Care Services NZ Limited and Bupa Retirement Villages Limited, British United Provident Association Limited, United Kingdom (100%) received approval for acquisition of a stratum in freehold interest in 1.3 hectares of land at 1 & 11 Cargill Street, Waikiwi, Invercargill. The consideration was $4,181,081; the vendor was Oceania Care Company Limited and Oceania Village Company Limited, Macquarie Specialised Asset Management Limited as responsible entity for Macquarie Global Infrastructure Fund IIA, Australia (50%), Macquarie Specialised Asset Management 2 Limited as responsible entity for Macquarie Global Infrastructure Fund IIB, Australia (50%), Dawn Patricia Todd, Roy Alan Barlow, Pamela Fay Meredith & Peter Brian Barlow New Zealand (100%) and Adeline Ellen Mary Young & Valmai Ann Glendinning New Zealand (100%).
The OIO states: "The Applicant intends to acquire the land and associated retirement village and aged care business. The Applicant intends to convert half of the existing rest home care beds to dementia care beds, having identified a shortage of dementia care level beds in lnvercargill and the surrounding areas". Based in the UK, with a core business as a health insurer in 190 countries, BUPA operates runs rest homes in UK, Spain, and Australia & New Zealand. BUPA purchased NZ-based but Australian-owned Guardian Healthcare Group (GHG) in 2007, rebranding it as Bupa 2009. BUPA operates 46 rest homes and retirement villages and was the runner up in the 2010 Roger Award. The Judges' Report is online here.
Back to TopSwiss Buys Waitangirua Forest
Monte Capital Limited, Christian Welte, Switzerland (100%) received approval for the acquisition of a freehold interest in approximately 533 hectares of land located at Kokomuka road, Lottin Point, East Cape (Waitangirua Forest). Consideration was $2,100,000; the vendor was Waitangirua Forest Limited New Zealand (100%). The OIO states: "The Applicant intends to amalgamate the land into its existing adjoining forestry operation in order to create a viable and sustainable forest for timber production".
Keith Melville in the Opotiki News (3/7/14) reports further. "A Swiss businessman has bought a 533-hectare Lottin Point forestry property for $2.1 million, taking his East Cape regional land holdings to 10,226ha of mainly freehold land. Businessman Christian Welte owns the largest biomass power plant in Europe - Tegra AG. His New Zealand land holdings include four Waikura Valley properties, inland from East Cape, and now the neighouring Lottin Point property, plus two Waiotahi Valley properties in the Opotiki district. The four East Cape purchases were approved by the Overseas Investment Office in 2011 and 2012, and cost $24,870,000.
"His latest purchase, of Waitangirua Forest at Lottin Point, through his company Monte Capital (formerly Monte Forestry), was approved by the Overseas Investment Office (OIO) in May. The OIO said Monte Capital planned to create a viable and sustainable forest for timber production. In November 2011, the OIO cleared Monte to purchase 5,022ha of freehold land and 1,480ha of leasehold and licensed land at the Waikura and Pakira stations in the Waikura Valley.
"Mr Welte paid $16,250,000 for these two properties which the OIO said he planned to combine with a third farm into a single forestry and sheep and beef farming operation. This third farm, Mohau Station (1,210ha) on Waikura Road was approved by the OIO for purchase in June 2012, and cost $3,620,000. In another decision in November 2011, the OIO gave Mr Welte approval to buy Rewetu Station also in the Waikura Valley. Mr Welte paid $5 million for the station comprising 1,962ha of freehold land and 55ha of leasehold. His two Waiotahi Valley forestry blocks total 2,061ha. He bought the first of these, a 1,629ha block, from the Camellia Trust in February 2011 for $3m. In doing so he gave notice he intended to buy an adjoining 432ha forestry block. The Companies Office shows Monte Capital's registered office is with BDO Accountants in Rotorua.
"Records show that, as at December 31, 2012, the company had property plant and equipment worth $33,406,000, total assets of $44,423,000, and $19,823,000 in total equity. The company's net loss for the year was $2,119,000". See our commentary in February 2011 for details of Christian Welte's purchase of 2,061 hectares in Opotiki, our November 2011 commentary for details of his purchase of 7,000 hectares freehold and 1,500 hectares leasehold on the East Cape and our June 2012 commentary for details of another 1,210 hectares purchased at Waikura.
Back to TopCraigmore To Expand North Otago Dairy Farm
Craigmore Farming NZ LP, United Kingdom Public (36%), Hong Kong Public (17%), German Investors, Germany (11%), New Zealand Public (10%) and Various (26%) received approval for the acquisition of a freehold interest in approximately 403 hectares of land located at 96 Pig Island Rd, Windsor, North Otago. The vendor was North Otago Farm Limited New Zealand (100%). Consideration was "withheld under section 9(2)(b)(ii) of the Official Information Act".
The OIO states: "The Applicant intends to develop the Land in order to realise the full potential of the dairy farming operation carried out on the Land. Major development includes a new 54 bale dairy shed, new housing, irrigation and general infrastructure improvements". Craigmore has been an active purchaser over the past couple of years. See our previous commentaries in June 2012, February 2013, March 2013, November 2013, March 2014 and April 2014 for background on Craigmore Farming and its other land purchases here.
Back to TopShell Buys 121 Hectares To Prevent Further Maui Leaks
Maui Development Limited Royal Dutch Shell plc, United Kingdom (83%), OMV Aktiengesellschaft, Austria (10%) and The Todd Corporation Limited, New Zealand (7%) received approval for the acquisition of a freehold interest in approximately 121.3 hectares of land at 14 Gilbert Road, Pukearuhe, Taranaki. The vendor was Shane Richard McDonald and Philip Jackson Armistead as trustees of the Liberty No 1 Trust and the Liberty No 2 Trust New Zealand (100%). Consideration was $1,270,000.
The OIO states: "The Applicant owns and operates the Maui gas transmission pipeline, the largest capacity high-pressure gas transmission pipeline in New Zealand. In October 2011, a gas leak occurred in a section of the pipeline and caused significant disruption to businesses and services in the top half of the North Island. The leak has been repaired but the pipeline requires further work to ensure its long-term reliability. The Applicant is acquiring the land in order to facilitate those remediation works".
Back to TopAmericans Buy British FX Trader
Euronet Worldwide, Inc. Various (60.1%), Waddell & Reed Financial Inc., United States of America (10.2%), BlackRock, Inc, United States of America (7.6%), RS Investment Management Co. LLC, United States of America (5.8%), Michael Jay Brown, United States of America (5.7%), The Vanguard Group, Inc., United States of America (5.5%) and Janus Capital Management LLC, United States of America (5.1%) received approval for the acquisition of rights or interests in 100% of the shares of HiFX Limited ("HiFX") (the value of the assets of HiFX and its 25% or more subsidiaries being greater than $100m) via the Applicant's acquisition of up to 100% of the shares in HiFX's 100% parent EIM (FX) Limited.
The vendors were Existing shareholders of EIM (FX) Limited United Kingdom Public (89.6%), New Zealand Public (9.9%) and Australian Public (0.5%). Consideration was $100,514,654. The OIO states: "Euronet Worldwide. Inc. has entered into a Share Purchase Agreement with the shareholders of EIM (FX) Limited (EIM) and TBK (FM) Limited (both private companies limited by shares) as vendors, for the purchase of the entire issued share capital in those companies. The Applicant will indirectly acquire up to a 100% interest in HiFX through the acquisition of shares in EIM which is the HiFX group holding company and parent of HiFX plc, which is in turn the parent of the New Zealand target company HiFX. HiFX operates the HiFX business in New Zealand, that core business being international payment and foreign exchange services, which will continue after the acquisition".
Reuters reported further on the global deal (21/5/14). "Euronet Worldwide, Inc. (Nasdaq:EEFT), a leading global electronic payments provider and distributor, today announced it has completed the acquisition of U.K.-based HiFX. The acquisition complements Ria, Euronet's existing money transfer business, by expanding its offerings to include online-initiated, account-to-account international payment and foreign exchange services to high-income individuals and small-to-medium sized businesses.
"'We are excited to welcome HiFX into the Euronet group of companies', stated Michael J. Brown, Euronet's Chairman and Chief Executive Officer. 'Their online presence, affordable rates and deep knowledge of foreign exchange markets, combined with our strong bank relationships, global market entry expertise and solid balance sheet will allow us to expand and improve both R ia's and HiFX's product offerings and increase our market share in a fast-growing sector that produces 9.9 billion payment transactions per year'.
"Under the terms of the purchase agreement announced on March 10, 2014, Euronet acquired HiFX for approximately £145 million or $242 million. The purchase consideration was comprised of approximately 1.3 million shares of Euronet stock and approximately $185 million in cash, including approximately $78 million of cash on hand and approximately $107 million funded using Euronet's revolving line of credit. HiFX, now a wholly owned subsidiary of Euronet, will present its financial results with Euronet's existing money transfer segment. Consistent with the previous announcement, Euronet expects HiFX will contribute approximately 15 cents to Euronet's annual cash earnings per share in the first full year under Euronet ownership.
Back to TopAbout Euronet Worldwide, Inc.
"Euronet Worldwide is an industry leader in processing secure electronic financial transactions. The Company offers payment and transaction processing solutions to financial institutions, retailers, service providers and individual consumers. These services include comprehensive ATM, POS and card outsourcing services, card issuing and merchant acquiring services, software solutions, cash-based and online-initiated consumer-to-consumer and business-to-business money transfer services, and electronic distribution of prepaid mobile phone time and other prepaid products.
"Euronet's global payment network is extensive - including 18,558 ATMs, approximately 67,000 EFTPOS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 44 countries; card software solutions; a prepaid processing network of approximately 647,000 POS terminals at approximately 289,000 retailer locations in 34 countries; and a consumer-to-consumer money transfer network of approximately 219,000 locations serving 135 countries. With corporate headquarters in Leawood, Kansas, USA, and 53 worldwide offices, Euronet serves clients in approximately 155 countries.
Back to TopAbout HiFX
"HiFX is one of the largest and best known international money transfer specialists in the UK and Australasia with a reputation for consistently offering highly competitive, bank-beating exchange rates to both private individuals and businesses alike. To date, they have transferred in excess of $165 billion. Established in 1998, HiFX works with over 80,000 private individuals each year and 6,000 corporate clients worldwide. With more reviews than any other currency specialist, HiFX has earned a 5-star 'excellent' rating from 5,000+ verified independent Trustpilot reviews. HiFX customers love both the rates and the service they receive and the company has a hard-earned reputation for providing excellent value for the money and complete peace of mind".
Back to TopOther May Decisions
I-Lun Chien China, People's Republic of (100%), received approval for the acquisition of a freehold interest in approximately 14.4 hectares of land at Lot 12, Matawai Forest, Gisborne. The vendor was Liyoung Forestry Limited Li-ly Chang, New Zealand (90%) and Wei-young Wang, New Zealand (10%): consideration was $152,000. The OIO states: "The Applicant intends to grow the existing forest to maturity, harvest and then replant the land".
Steven Allen Carter and Suzanne Johnstone Carter, United States of America (100%), received approval for the acquisition of a half share in a freehold interest in 9.2 hectares of land at 36 Godfrey Road, Marlborough. The vendor was Ashmore Vineyards Limited Sutherland (Ivan Carl and Margaret Anne), New Zealand (100%): consideration was $550,000. The OIO states:" The Carters intend to contribute capital to the development of a vineyard by Ashmore Vineyards Limited, by purchasing a half share in the vineyard land".
Constellation Brands New Zealand Limited, Constellation Brands Inc, United States of America (100%), received approval for the acquisition of approximately freehold interest in 177.2 hectares of land at 191 Merrifields Road, Awatere, Marlborough. The vendor was Awatere Hills Vineyard Ltd, Awatere Hills Vineyard (No.2) Ltd, Awatere Hills Vineyard (No.3) Ltd, Awatere Hills Vineyard (No.4) Ltd, Awatere Hills Vineyard (No.5) Ltd & Awatere Hills Vineyard (No.6) Ltd New Zealand (100%); consideration was withheld. Once again the OIO simply states: "The Applicant is acquiring the land for the purpose of expanding its vineyards and winery business". See our January, February and March 2014 commentaries and our December 2013 commentary for details of other Constellation purchases in Marlborough.
Silver Fern International Travel and Trade Limited, Jun Chang, China, People's Republic of (80%), Rong Fu, China, People's Republic of (10%), Meidong Su, China, People's Republic of (5%) and Xin Wang, China, People's Republic of (5%), received approval for the acquisition of a freehold interest in approximately 9.7 hectares of land at Lots 4 & 5 Elysium Way, Slope Hill Road, Queenstown. The vendor was Donald William Andrew, Kathleen Mary Andrew and the Andrew Family Trust (Trustees Kathleen Mary Andrew and Roger Norman Macassey) New Zealand (100%): consideration was $1,400,000. The OIO states: "The Applicant is acquiring the land in order to establish an accommodation business and associated activities".
And finally for May, Fletcher Concrete and Infrastructure Limited, various overseas persons (62%) and New Zealand Public (38%) received approval for the acquisition of a leasehold interest in approximately 10.8 hectares of land at 560 Haruru Road, Wainui. The vendor was Bruce Andrew Hellyer New Zealand (100%): consideration was $29,753. The OIO states: "The Applicant owns a quarry in Wainui known as 'Flat Top Quarry' which supplies aggregate and sand to various building and roading industries in the Auckland market. The Applicant has been granted retrospective consent to regularise a leasehold interest acquired in 2005 in the land adjoining Flat Top Quarry which it also uses as part of its quarrying operations". For details of other land purchases here by Fletchers, see our commentaries for March and July 2007, March and June 2008, June, September and October 2009 and April 2011.
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