July 2007 decisionsCVC private equity takes holding in PBL to 75% CIP Canada acquires Stratos Global of Canada which owns sensitive land Icelandic storage company buys Versacold from its US owner Barenbrug of the Netherlands takes remaining shares in Barenbrug Southern Fletcher Concrete buys land at Pokeno, S. Auckland; most details suppressed AMP buys two blocks of Hawkes Bay land for lifestyle property subdivision Macquarie Goodman buys Manukau lease of land for commercial development CVC private equity takes holding in PBL to 75%Red Earth Holdings B.V. has approval to acquire 75% of PBL Media Holdings Pty Limited and PBL Media Holdings Trust for $163,246,498 from Publishing and Broadcasting Limited of Australia.
This is a very similar approval to last month (June 2007) where a 50% acquisition was approved. See our commentary for that month for further details, where we noted the final deal was for 75%. However it is anomalous that the price paid, $163,246,498, is unchanged from last month’s approval despite the higher level of ownership. Presumably this is a mistake.
As noted with regard to last month’s approval, the price must be only for the New Zealand assets of the company, given that the whole deal was reported to have been priced at A$4.6 billion (Press, “Packer moves out of media”, by Damon Kitney and Neil Showbridge, 5/6/07, p.C4).
Red Earth has been specially created for the purchase of half of the major Australian media company, Publishing and Broadcasting Ltd (PBL), by giant private equity corporation CVC Capital Partners Group. Ultimately Red Earth is owned · 53.6347% in the U.S.A. · 17.1337% by “various overseas persons” · 12% in the U.K. · 5.7334% in Singapore · 4.1662% in Canada · 4.0668% in the Netherlands; and · 3.2663% in United Arab Emirates.
According to the OIO,
Red Earth Holdings B.V. (Red Earth) is a special purpose vehicle incorporated in the Netherlands for the purposes initially of providing funding to Publishing and Broadcasting Limited (PBL) by acquiring 50% of the securities in PBL Media and Media Trust.
Again, the 50% figure appears to be a mistake. The OIO continues:
PBL is Australia’s leading diversified media company with interests in media, gaming and entertainment. PBL’s businesses include ACP Media Limited New Zealand’s largest magazine publisher. As part of a restructuring and recapitalisation of PBL’s businesses, PBL Media and Media Trust were established to hold media interests, including ACP Magazines, Nine Network (including its interest in Sky News), Ticketek, its 50% interest in ninemsn and its 41% shareholding in carsales.com.au. Red Earth and PBL have reached an agreement whereby Red Earth will acquire 75% of the securities in PBL Media and Media Trust as part of the restructuring and recapitalisation of PBL’s businesses.
[Decision number 200720007.] CIP Canada acquires Stratos Global of Canada which owns sensitive landCIP Canada Investment Inc has approval to acquire 1.2 hectares at 24 Unity Drive North, Auckland for $5,100,000 as part of the takeover of Stratos Global Corporation, previously owned 62% by Aliant Inc and 38% by minority shareholders, all of Canada.
CIP Canada is not owned in Canada: it is owned 20% each by Johannes Jacobus Lipman of the Netherlands, Eric Le Proux de La Riviere of France, Johannes Joseph Maria Van Moorsel of the Netherlands, Eric Maria Johannes Werner De Jong of the Netherlands, and by Victor Manuel Horcasitas of Spain.
The land involved “either alone or together with any associated land adjoins land that is listed or in a class listed, as a reserve, a public park, or other sensitive area”. This is apparently why it requires the OIO’s approval: the purchase of Stratos itself did not.
According to the OIO,
CIP Canada Investment Inc (CIP) is proposing to enter into a transaction whereby it will acquire beneficial ownership of 100% of the shares in Stratos Global Corporation (Stratos), a company incorporated in Canada. A subsidiary of Stratos owns sensitive land in New Zealand. The New Zealand component of the proposed transaction is a part of a wider international transaction.
Stratos provides mobile satellite services, fixed satellite services and terrestrial communications solutions to its customers throughout the world. CIP advises that little will change as a result of the proposed transaction. Stratos’ management will continue to execute Stratos’ current business strategy. The land contains an earth station providing satellite coverage to the Pacific Rim.
CIP is a new investment company whose investment in Stratos will form part of a proposed portfolio of investment in the satellite sector.
And then a threat:
Refusal to grant consent could likely adversely affect New Zealand’s image overseas. The New Zealand component of the proposed transaction is a part of a wider international transaction. CIP and its related entities are major international investors with respected reputations as skilled investors and business operators in the satellite service industry.
[Decision number 200720010.] Icelandic storage company buys Versacold from its US ownerHf Eimskipafelag Islands, owned 97.58% in Iceland, 1.24% in Liechtenstein, 0.85% in the Netherlands, and 0.33% in Cyprus, has approval to acquire Versacold Income Fund, including 2.0 hectares of leasehold at 1 Smarts Road, Hornby, Christchurch, Canterbury, for $72,000,000 from Versacold Holdings Corporation of Canada.
The OIO states:
HF Eimskipafelag Islands, through its wholly-owned subsidiary Eimskip Holdings Inc, has made an offer to acquire all of the outstanding units of Versacold Income Fund (Versacold) an unincorporated, open-ended limited purpose trust listed on the Toronto Stock Exchange, created to invest in public refrigerated warehousing, distribution and related businesses in the United States of America, Canada, Australia, New Zealand and Argentina. The proposed acquisition is part of the Applicants strategy to become a leading international operator in cold storage and logistics networks.
[Decision number 200720009.] Barenbrug of the Netherlands takes remaining shares in Barenbrug SouthernIn a retrospective decision, Barenbrug Holding BV has approval to acquire the remaining 8.17% of shares it does not already own in Barenbrug Southern Limited for $2,950,950 from minority shareholders of Aotearoa. The company owns 163 hectares at Old West Coast Road and Addingtons Road, Canterbury. It is owned 62.1% by Hubertus Josephus Barenbrug, 33.7% by Bastiaan Josephus Barenbrug and Frank Barenbrug, and 4.2% by minority shareholders, all of the Netherlands.
The OIO states:
Barenbrug Holding BV (Barenbrug) is the parent company of the Royal Barenbrug Group which operates in the business of breeding, producing and marketing of forage (ie for stock feed) and amenity (ie to bring some benefit to the land on which the crop is grown). Barenbrug has 20 subsidiaries in 12 countries. Barenbrug seeks consent to acquire the 8.17% of the shares in Barenbrug Southern Limited (Barenbrug Southern) that it does not already own.
Barenbrug Southern in turn owns 100% of New Zealand Agriseeds Limited (Agriseeds). Barenbrug has been a shareholder in Barenbrug Southern for nearly 20 years. Barenbrug’s New Zealand operations complement its businesses in Europe, North and South America and China.
Barenbrug views the acquisition of the remaining 8.17% of shares in Barenbrug Southern as being important to the continuing expansion and success of its seed research and production operations. The subject land is used for intensive plant breeding, research, parent seed production and cultivar evaluation. As part of rotational requirements, occasional commercial crops of grasses, cereals and pharmaceutical crops are grown.
The last OIO or OIC approval for an acquisition by Barenbrug was in 1999, when it took the remaining 49% of Agriseed that it did not already own. See our commentary for May 1999 for further details of that decision and the company itself.
[Decision number 200720001.] Fletcher Concrete buys land at Pokeno, S. Auckland; most details suppressedIn two separate but obviously related decisions, Fletcher Concrete and Infrastructure Limited, owned 34% in Australia, 13% in the U.S.A., 11% by “various overseas persons”, and 42% in Aotearoa, has approval to acquire land at Pokeno, South Auckland: · 20 hectares at 242 Bluff Road from Adrian Thomas Gadsden, Kim Anne Healy, and Vicki Collins as trustees of the Lancewood Family Trust of Aotearoa [Decision number 200720002]; and · 211 hectares at 42 Potter Road from Roger Taylor Limited of Aotearoa [Decision number 200720003].
Virtually all other details have been suppressed other than the business activity, which is “Manufacturing – Non-metallic Minerals”.
However, despite being suppressed, the total paid for the two acquisitions can be calculated from the statistics supplied: $8,548,854. AMP buys two blocks of Hawkes Bay land for lifestyle property subdivisionIn two separate decisions, AMP companies have gained approval to acquire land in Hawkes Bay to subdivide into lifestyle blocks. The companies are owned 48.39% in Australia and 51.61% in Aotearoa.
· AMP Napier No.1 Limited has approval to acquire 49 hectares at Esk View Road and Heipipi Drive, Napier, Hawkes Bay for $4,050,000 from East Hills (2001) Limited, owned by Gerard Joseph Logan, Stella Pamela McLeod and Graham Hunter Throp, all of Aotearoa, as trustees of the East Links Trust. This land “either alone or together with any associated land” adjoins a scientific, scenic, historic, or nature reserve under the Reserves Act 1977 that is administered by the Department of Conservation. [Decision number 200720008.] · AMP Napier No 2 Limited has approval to acquire 72 hectares at Puketitiri Road, Puketitiri, Hawkes Bay for $2,700,000 from Kopaki Bay Limited, with the same owners as East Hills. The OIO states in this case that “the Applicant advises that the proposed development is likely to consist of a minimum of 51 individual sections” (i.e. lifestyle blocks). [Decision number 200720005.]
According to the OIO in both cases,
AMP Capital Investors (New Zealand) Limited (AMP Capital) proposes to enter into a joint venture with two New Zealand companies to develop land in the Hawkes Bay. AMP Capital will participate in the Joint Venture through an investment fund under its control, known as AMP Private Equity Real Estate Fund II (APEREF). The Applicant is a wholly owned subsidiary of APEREF.
The Joint Venture proposes to subdivide and develop the land, ultimately selling the developed sections on the open market as lifestyle blocks… The proposed investment is likely to provide additional equity funding to assist in the development of the land and satisfy the Applicants’ investors’ demand for an increasingly diverse range of assets. Macquarie Goodman buys Manukau lease of land for commercial developmentMacquarie Goodman Nominee (NZ) Limited and Macquarie Goodman Nominee (NZ) No 2 Limited as nominee of the Macquarie Goodman Property Trust and Macquarie Goodman Group has approval to acquire 3.0 hectares of leasehold at 60 Westney Road, Manukau, Auckland from Workstore Developments Limited.
The price has been suppressed. However, it can be calculated from the statistics supplied: $4,280,533.
The land includes or adjoins land which is provided as a reserve, a public park, for recreation purposes, or a private open space.
The Macquarie Goodman companies are owned 51.6044% in Australia, 4.25% in Australia by Macquarie Bank Limited, 6.3175% by “various overseas persons”, 32.7034% by minority shareholders in Aotearoa, and 5.1247% in Aotearoa by Goodman Holdings.
Workstore Developments is owned 50% Richard Balcombe-Langridge, Glenda Eveleen Balcombe-Langridge, and Andrew Balcombe-Langridge as trustees of the Chiswick Trust, 25% by Christopher Verissimo as trustee of the Christopher Verissimo Trust, and 25% by Terrence John Scott as trustee of the Terrence John Scott Trust, all of Aotearoa.
According to the OIO,
The Applicant has received consent to enter into options to lease all of or part of a 34 hectares property located at 60 Westney Road, Manukau, Auckland. The Applicant proposes to enter into a ground lease of the subject property (which forms part of the 34 hectare property) from Workstore Developments Limited (Workstore) for an initial term of 20 years. The ground lease will be perpetually renewable.
The Applicant proposes to undertake a commercial property development on the subject land which will be sub-leased to Computer Transport Services (New Zealand) Limited, a subsidiary of Fliway Group Limited to be utilised for warehouse and distribution facilities. The entry into a sub-lease which will facilitate the proposed development to be undertaken by the Applicant [sic].
We have no record of the consent for the 34 hectare property mentioned, but it is also referred to in an earlier decision also involving a lease from Workstore (that time for Linfox Logistics), in November 2004. See our commentary for that month for further details.
[Decision number 200720006.] Other rural land sales· Paul James Morgan and Glenda Jean Morgan of Australia have approval to acquire 31 hectares at 301 Owen Valley East Road, Murchison, Nelson, for $815,000 from Joseph Ashley Moreton and Caroline Rose Moreton, and Knapps Lawyers Trustee Co. 2004 (No.2) Ltd as trustees of the JA &CR Moreton Family Trust of Aotearoa. The OIO states: “The Applicants wish to settle and retire in New Zealand. This is a lifestyle property application. The Applicants propose to live on the property and use the surrounding land to graze cattle, reforest 5 hectares into native bush and develop vegetable gardens and fruit tress. The Applicants will consolidate their assets into Australia as an interim measure to transferring the assets to New Zealand. During this process the Applicants will not live full time in New Zealand. The Applicants intend to reside in New Zealand permanently by mid 2008. The Applicants have purchased furniture for the house, and intend to purchase motor vehicles and open bank accounts on their next visit to New Zealand. The Applicants are Australian citizens who wish to purchase this lifestyle property in order to begin their retirement in New Zealand.” [Decision number 200720004.] Summary statisticsAll investments This was a relatively quiet month with only 10 approvals (including one retrospective) and $261 million in investment approved (only $11.7 million net). The value of investment approved in the year to July 2007 is about four times that for the previous July year, but the net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) is about 50% higher. By far the greatest part of the value of the approvals is for sale from one overseas investor to another.
* In addition there was 1 retrospective approval granted during the month. This involved a net investment of $2,950,950 and gross consideration of $2,950,950.
Investment involving land Gross and net sales of land approved by the OIO during the years to July have fallen considerably in area compared to the same period last year. Refusals (above) are approximately the same as last year in number, value and area, and are still a tiny proportion of the total.
*In addition there was 1 retrospective approval granted during the month. This involved a net land area of 13 hectares and a gross land area of 163 hectares.
Fishing Quota There has been no fishing quota approved for sale this year.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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