August 2008 decisionsAndersons Bay Dunedin decision largely suppressed Dixie Cummings of Australia expands into Aotearoa with Auckland joint venture ABN Amro buys land for development from McConnell Property Approval for failed British Gas bid for Origin Energy UEM Group Berhad restructuring its Opus Group subsidiaries Pernod Ricard buys 27 ha. of leasehold to expand its vineyards in Marlborough Spanish buyer for 300 ha. Springs Junction beef farm Andersons Bay Dunedin decision largely suppressedAn entity whose name has been suppressed, owned 99% in Australia, 0.23% by “Various overseas persons”, and 0.77% in Aotearoa, has approval to acquire 1.0 hectares at 14 & 16 Braemar Street and 323 Andersons Bay Road, Dunedin, Otago for a suppressed amount from Andersons Bay No. 1 Limited, owned 100% in Aotearoa by Michael Egbert Van Aart. The land “adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the [OIO]”.
According to the OIO,
The Applicant is seeking to expand its operations across New Zealand.
The Applicant has entered a sale and purchase agreement for the land with the vendor. The agreement is conditional on obtaining the Overseas Investment Office’s consent.
The proposed investment is part of the Applicant’s growth strategy. Currently the Applicant has no presence in the area.
The “business activity” is “Wholesale and Retail Trade”. Other than that, there are few clues as to what the approval is about. It is very likely related to a decision last month about a land purchase in Kerikeri (see our commentary for July 2008) which had the same crucial details suppressed, the same business activity, and exactly the same distinctive pattern of ownership.
[Decision number 200820020.] CSR to buy Ross RoofingCSR Building Products (NZ) Limited, owned 96.3% in Australia, 2.32% in Aotearoa, and 1.38% by “Other Investors”, has approval to acquire an interest in 2.0 hectares at 7 and 14 The Furlong, Takanini, Auckland for an amount “to be advised”, from Ross Properties Limited, owned 50% by IR Ross & SB Robertson as trustees on behalf of The James Ross Family Trust, and 50% by JC Ross & RA Watson as trustees on behalf of the Ian Ross Family Trust, all of Aotearoa. The land “adjoins the foreshore” and “adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the [OIO]”.
According to the OIO,
The Applicant wishes to purchase Ross Roofing Limited (‘Ross Roofing’), a New Zealand company in the business of roofing installation, manufacturing roof tiles and selling and distributing bricks.
Ross Roofing operates its business from land owned by its associate, Ross Properties Limited (‘Ross Properties’). Accordingly, when the Applicant purchases the business of Ross Roofing, it wishes to lease the land from Ross Properties on which the business currently operates. In addition, as part of the lease, Ross Properties has agreed to grant the Applicant an option to purchase the land.
The Applicant is initially acquiring a leasehold interest in the land with an option to acquire the freehold interest within 5 years of obtaining consent.
[Decision number 200820022.] Dixie Cummings of Australia expands into Aotearoa with Auckland joint ventureFindella Pty Limited, owned 50% each by George Mantzis and Mary Mantzis, both of Australia, has approval to acquire 1.4 hectares at 6 Rymer Place, Mangere, Auckland for $5,625,000 from Cameron Cornwall Properties Limited, owned 33.34% by Ross Anthony Sheerin, 33.33% by Neil Robert Parker, and 33.33% by Phillip Raymond King, all of Aotearoa. The land adjoins the foreshore and “adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the [OIO]”.
According to the OIO,
The Mantzis Family Trust is one of the principal shareholders of Dixie Cummings Enterprises Pty Ltd (‘Dixie Cummings Australia’), which claims to be Australia’s largest private importer and distributor of furniture from Asia (over four hundred 40-foot containers each month). Dixie Cummings Australia now wishes to expand its business into New Zealand.
The shareholders of Dixie Cummings Australia have entered into a joint venture with the shareholders of John Young Furniture Limited (‘JY Furniture’), a New Zealand company that has manufactured lounge suites in Auckland for the past 34 years. The parties have incorporated a new company in New Zealand to operate the joint venture, called Dixie Cummings New Zealand Limited (‘Dixie Cummings NZ’).
Dixie Cummings NZ proposes to operate its business from the same factory and warehouse premises that JY Furniture has operated from in Mangere Bridge.
The Applicant, acting as the trustee of the Mantzis Family Trust, is purchasing the freehold interest in the land, including all existing improvements.
Purchasing the land will allow the Applicant to support its investment in Dixie Cummings NZ by owning the premises from which the business will operate. The OIO gives the benefit to Aotearoa as “Retention of existing jobs in New Zealand that might otherwise be lost”, and “Introduction into New Zealand of additional investment for development purposes.” If John Young Furniture Limited is a going concern, presumably the threat was that the entry of Dixie Cummings into the New Zealand market without the joint venture arrangement with John Young would be likely to put John Young out of business.
[Decision number 200820024.] ABN Amro buys land for development from McConnell PropertyABN AMRO Property New Zealand Limited, owned 58% in the U.K., 24.7% in the U.S.A., 14.2% elsewhere in Europe, and 3.1% by “Various overseas persons”, has approval to acquire McConnell Property Limited, including 218 hectares of freehold and leasehold comprising approximately · 75 hectares at Hamilton International Airport, Airport Road, RD2, Mystery Creek, Hamilton (Titanium Park); · 16 hectares at 211, 233A-233B, 225, and 231 Porchester Road, Takanini, South Auckland (Addison Land); · 24 hectares at 75 Walters Road, Takanini, Auckland (McLennan Land); and · 103 hectares at 105 Middle Road and 188 Narrows Road, Rukuhia, Hamilton (Montgomerie Farm)
for a suppressed amount from existing shareholders of McConnell Property Limited: Arthur William Young and Allan John Wadams, both of Aotearoa (50% each).
The OIO states:
McConnell Property Limited (Vendor) is a 100% New Zealand-owned company involved in property development. It is part of the McConnell Group of companies (McConnell Group).
The Applicant seeks consent to acquire up to 100% of the securities in the Vendor, thereby indirectly acquiring interests in several parcels of sensitive land.
The ABN AMRO New Zealand Group (ABN AMRO NZ) has identified similar property development opportunities in New Zealand and, with the expected growth in the savings pool in New Zealand, a potential source of funds. ABN AMRO NZ has chosen to partner with the McConnell Group and leverage off their complementary expertise, interests, and resources.
[Decision number 200820021.] Approval for failed British Gas bid for Origin EnergyBG Group Plc, owned 73.14% in the U.K., 14.97% in the U.S.A., and 11.89% by “Various overseas persons”, has approval to acquire Origin Energy Limited, “thereby acquiring indirect interests in approximately 52% of the securities in Contact Energy Limited, and various parcels of sensitive land”, including “approximately 11,900 hectares of freehold situated at various addresses” and “approximately 1,100 hectares of leasehold at various addresses” for a sum “to be advised”. Origin Energy Limited is owned 80.98% in Australia, 7.68% by “various overseas persons”, 6.18% in the U.S.A., 4.94% in the U.K., and 0.22% in Aotearoa.
The OIO states:
The Applicant has made a takeover bid for all the shares in Origin Energy Limited (Origin).
The Applicant lodged its most recent Bidder’s Statement with the Australian Securities Exchange on 5 August 2008. The Applicant’s offer is subject to various conditions, including a minimum shareholder acceptance of 50.1%, and obtaining the Overseas Investment Office’s prior consent.
The Applicant considers it is well placed to develop Origin’s major gas production interests in New Zealand by drawing on its skills and technologies across the gas chain.
This was part of a A$13.8 billion bid by the BG (British Gas) Group for the entire Origin Energy group, launched in late April 2008 with its eyes mainly on Origin’s gas assets in Australia. There was considerable speculation as to what BG would do with the Contact Energy shareholding if the bid succeeded because the asset seemed out of place in BG’s operations. In the end Origin sold off some of its assets (a half share in a gas development to ConocoPhillips) and BG allowed its offer to lapse.
Despite the proposal marginally increasing the overseas ownership (from 99.78% to 100%) the OIO claims that the benefits include
· Greater efficiency or productivity. · Additional investment for development purposes. · Adequate protection mechanisms for significant indigenous vegetation and habitat of indigenous fauna. · Adequate walking access over relevant land. · Key person in key industry. · [Refusing the application would] adversely affect New Zealand’s image overseas. · Advance significant Government policy or strategy. · Maintain New Zealand control of strategically important infrastructure.
The last one is particularly difficult to comprehend.
[Decision number 200820023.] UEM Group Berhad restructuring its Opus Group subsidiariesUEM Group Berhad, owned in Malaysia, has approval to acquire up to 100% of Opus Group Berhad for $175,758,000 (for its assets in Aotearoa) from other shareholders, all of whom are in Malaysia.
According to the OIO,
UEM Group Berhad (UEM Group) currently indirectly owns 66.67% of the shares in Opus International Consultants Limited (Opus), a New Zealand engineering company listed on the New Zealand Stock Exchange. UEM Group currently owns 58.54% of the shares in UEM World Berhad, which owns 62.24% of the shares in Opus Group Berhad. Opus Group Berhad owns 100% of the shares in Opus International (NZ) Limited which owns 66.67% of Opus.
UEM Group is proposing to undertake an upstream restructuring of certain UEM Group’s subsidiaries. Following the restructuring the same UEM Group subsidiary will continue to hold 66.67% of the shares in Opus. The proposed restructuring involves a restricted offer for sale (ROS) by UEM World of all of its ordinary shares in Opus Group Berhad to UEM World’s shareholders in proportion to their shareholding in UEM World. UEM Group has undertaken to acquire its entitlement as well as any other shares not taken up by other shareholders. Upon the ROS becoming unconditional, UEM Group will be obliged to extend a mandatory takeover for the remaining shares in Opus Group Berhad.
The proposed restructuring is being undertaken to position the businesses within the UEM World Group of companies for growth by providing a more efficient and streamlined corporate structure.
Opus is based on the privatisation of the Consultancy Division of the Ministry of Works and Development. Works Consultancy Services was sold to Malaysian company Kinta Kellas (see our commentary for August 1996 for further details) and then renamed to Opus International Consultants Ltd. (See http://www.opus.co.nz/about_opus/our_history/, accessed 3 January 2009.)
[Decision number 200820017.] Pernod Ricard buys 27 ha. of leasehold to expand its vineyards in MarlboroughPernod Ricard New Zealand Limited, owned in France, has approval to acquire 27 hectares of leasehold at Marfell Downs, Seaview Road, Seddon, Marlborough for $957,482 from P.H. Redwood & Company Limited, owned 50% by Christopher John Redwood, and 50% by Patricia Mary Redwood, both of Aotearoa. The land “adjoins land over 0.4 hectares that includes a historic place, historic area, wahi tapu, or wahi tapu area that is registered or for which there is an application or proposal for registration under the Historic Places Act 1993.”
The OIO states:
The Applicant’s principal operations in New Zealand are the growing of grapes, production of wine, buying wine and the wholesaling and retailing of wine and other beverages in New Zealand and overseas.
The Applicant proposes to acquire a leasehold interest over the relevant land to undertake a vineyard development. The land adjoins land already operated as a vineyard by the Applicant, contains approximately 22 plantable hectares which the Applicant intends to plant in Sauvignon Blanc.
The Applicant believes that there is a huge demand that exists locally and internationally for Sauvignon Blanc produced under the Montana brand. The Applicant therefore wishes to expand its vineyards to provide for more Sauvignon Blanc grapes.
[Decision number 200820019.] Spanish buyer for 300 ha. Springs Junction beef farmBlanca Fernandez-Rivera of Spain has approval to acquire 207 hectares of freehold and 94 hectares of leasehold at Blue Grey Farm, Springs Junction, Westland for $3,375,000 from Bellview Enterprises Limited, owned 30% by David Bell, 30% by Janice Kirkby Bell, 20% by Phillip Telford Bell, and 20% by Michelle Elisabeth Bell, all of Aotearoa. The land “is or includes land held for conservation purposes under the Conservation Act 1987 … and adjoins land held for conservation purposes under the Conservation Act 1987”.
The OIO states:
The Applicant is currently in Spain as she is responsible for elderly mother’s healthcare. She and her husband intend to move permanently to New Zealand to live indefinitely.
The Applicant has entered a sale and purchase agreement with Bellview Enterprises Limited (Vendor) to acquire the Land. The acquisition is conditional on obtaining the Overseas Investment Office’s consent and includes two Department of Conservation grazing licences to which the Overseas Investment Act 2005 does not apply.
As part of the Applicant’s and her husband’s New Zealand residence permits, they must make New Zealand their home within the next five years. To demonstrate this, they must purchase a family home within twelve months from the permit’s date of issue. The Applicant and her husband will use the Land for their long-term permanent residence.
[Decision number 200820018.] Summary statisticsAll investments Both the gross value and the net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) of investment approved in the year to August 2008 is considerably lower than for the previous August year. 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 August have increased in area. However sales of leases and other interests in land have risen substantially in both gross and net area. Refusals (above) have fallen in number, but have increased in area and value (due to the Auckland International Airport refusal), though are still a small proportion of the total.
Fishing Quota As usual, there was no fishing quota approved for sale this month.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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