February 2007 decisionsBlue Star Print Group sold to CHAMP Private Equity for $173 million Wesfarmers of Australia buys insurance broker Crombie Lockwood Eastern Corporation of Australia buys Nightcaps coal mine, Southland Australian fund buys 43% of Ezibuy Multiplex buys half of Pegasus Town, new town developers in Canterbury New Zealand Crane Group buys Tauranga land for Todd and Pollock subsidiary Australia Post Superannuation Scheme buys lease over Murupara forestry land
One application refusedMichael John Ramsay and Faith Lesley Ramsay of the U.K. have been refused approval to acquire 4.8 hectares at Morris Road, Wanaka, Otago for $528,750 from Cardrona Riverside Limited of Aotearoa.
The land “either alone or together with any associated land… adjoins land held for conservation purposes under the Conservation Act 1987”.
The OIO states:
The Applicants propose to acquire the subject land, which is part of a subdivision currently being undertaken by the vendor. The Applicants propose to construct a house on the land for use as a New Zealand holiday home and as a base from which to maintain regular contact and to make new client contact with New Zealand investment representatives interested in investing in the European Loan Market.
The application for consent has been declined as the Overseas Investment Office was not satisfied that all of the criteria in section 16 of the Overseas Investment Act 2005 have been met. The Overseas Investment Office was not satisfied that the proposal will or is likely to result in benefits to New Zealand, or any part of it or group of New Zealanders.
[Decision number 200710004.] Blue Star Print Group sold to CHAMP Private Equity for $173 millionSirius NZ Finance Co Limited, owned 68.935% in the U.S.A., 17.115% in Australia, and 12.4% by Thomas Wilton Sturgess of Aotearoa, and 1.55% by minority shareholders in Aotearoa, has approval to acquire up to 100% of Blue Star Print Group Limited for $173,250,000 from existing shareholders in the company, which was owned 89.03% in Aotearoa and 10.97% in Australia.
According to the OIO,
The Applicant is a special purpose company incorporated by 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. The Applicant proposes to acquire 100% of the shares in Blue Star Print Group Limited, a company that provides print and marketing communications solutions in New Zealand and Australia. The Applicant intends to grow the Blue Star business significantly over the next three years.
Tom Sturgess is the Managing Director of Blue Star; the other local shares are held by management of Blue Star. CHAMP is a private equity investor, and Blue Star is its first purchase in Aotearoa (“Sale of BSPG to CHAMP”, Blue Star Group release to the New Zealand Stock Exchange, 20/12/06).
Blue Star says of itself:
Blue Star Print Group is a leading Australasian commercial printing group headquartered in Auckland. It is New Zealand’s largest multi-disciplined full service print provider and also has a significant presence in Australia. BSPG employs over 1,200 staff within three divisions and a labels business. Its portfolio of established brands, including McCollams, Nicholsons, Format, Printlink, Securacopy, Webstar, Rapid Labels, BSP Integrated Solutions and BSP Logistics in New Zealand and Link Printing, Kings Mailing, Craftsman Press, Webstar, BSP Integrated Solutions and BSP Logistics in Australia, services a diversified customer based in both countries. Clients include agencies and departments of the New Zealand government and many of Australia and New Zealand’s leading corporate and financial institutions. Over the past five years, it has undertaken an extensive $100.0 million capital expenditure programme that has resulted in modern technologies across all business units. Blue Star Print Group generated revenues of NZ$395 million in FY06. (“Blue Star Print Group acquires National Capital Printing and Complete Mail & Warehousing”, news release by Blue Star Group on acquisition of the two Canberra-based companies, 15/5/07.)
Blue Star originated with businessman Eric Watson, who sold it in 1996 to the then rapidly expanding US company US Office Products (USOP). USOP got into financial trouble and sold off Blue Star’s assets beginning in 2000. Blue Star management bought what remained in 2001, and is now selling it to CHAMP Private Equity. For details of the story of Watson’s purchase and sale of Blue Star and its subsidiaries, and USOP’s various acquisitions and sales, see our commentary on OIC decisions in February 1996, March 1996, June 1996, July 1996, September 1996, May 1997, February 1999, February and August 2000.
[Decision number 200710010.] Wesfarmers of Australia buys insurance broker Crombie LockwoodWesfarmers Limited, owned in Australia, has approval to acquire Crombie Lockwood (NZ) Limited, Monument Insurance (NZ) Limited and Monument Finance Limited for a suppressed amount from Crombie Lockwood Holdings (NZ) Limited of Aotearoa.
The OIO states:
Wesfarmers Limited (Wesfarmers) proposes to acquire all of the shares in Crombie Lockwood (NZ) Limited, Monument Insurance (NZ) Limited (the Crombie Lockwood Group). The business activities of the Crombie Lockwood Group include insurance broking, wholesale and underwriting and premium funding. Wesfarmers considers that the acquisition represents a strong strategic fit with the the recent acquisition by Westfarmers of the OAMPS insurance broking group in Australia and supports its expansion into the insurance broking industry.
[Decision number 200710012.] Eastern Corporation of Australia buys Nightcaps coal mine, SouthlandAn approval to acquire a leasehold property is part of a purchase of the Nightcaps coal mining business. Takitimu Coal Limited, owned in Australia by Eastern Corporation Limited, has approval to acquire 76 hectares of leasehold at Ohai, Nightcaps, Southland for $136,585 from the Southland District Council.
The leasehold “either alone or together with any associated land of that type… is or includes land that a district plan or proposed district plan under the Resource Management Act 1991 provides is to be used as a reserve, as a public park, for recreation purposes, or as open space”.
The OIO states:
Takitimu Coal Limited (Takitimu), a subsidiary of Eastern Corporation Limited (Eastern) a company listed on the Australian Stock Exchange, proposes to enter into a lease of the land. Takitimu views the proposal as complementary to its recent acquisition being the purchase of the Nightcaps Mining business from Straith Industries Limited and Ohai Coals Limited. Takitimu has secured a transfer of Coal Mining Licence 37079 which provides Takitimu a right of access over the land to carry out mining operations. Takitimu advises that entering into the lease will complement its existing rights provided for under the Licence and ensure the sustained and long-term investment. Takitimu proposes to re-establish mining operations at the Nightcaps Mine which has been dormant for many years and investigate the possible re-commencement of mining at the Mossbank Mine.
[Decision number 200710011.] Australian fund buys 43% of EzibuyMultichannel Limited, owned 50% each by Catalyst Buyout Fund 1A Pty Limited and Catalyst Buyout Fund 1B Pty Limited of Australia has approval to acquire 43.47% of Ezibuy Limited for a suppressed amount from existing shareholders. Ezibuy was owned 22.84% in Australia and 77.16% in Aotearoa.
The OIO states:
The Applicant is a special purpose vehicle established for the purposes of the proposed investment by Catalyst Investment Managers Pty Limited (Catalyst). The Applicant proposes to acquire 43.47% of the shares in Ezibuy Limited (Ezibuy) an apparel and home decor business operating in New Zealand and Australia. The acquisition will ensure that the combination of Ezibuy’s industry background and management experience with the financial resources and business acumen of Catalyst will help to improve and grow Ezibuy’s business.
[Decision number 200710014.] Multiplex buys half of Pegasus Town, new town developers in CanterburyMultiplex Developments (NZ) Limited, owned in Australia, has approval to acquire up to 50% of Pegasus Town Limited, including 401 hectares at 1120 Main North Road, Woodend, and 397 Williams Road, Kaiapoi, Canterbury for $28,255,915 from existing shareholders in Pegasus Town Limited, owned 66.27% in Aotearoa by Robert Hay Robertson and Jennifer Robertson, 33.73% in Aotearoa by minority shareholders.
The OIO states:
Multiplex Developments (NZ) Limited proposes to acquire 50% of the shares of Pegasus Town Limited (Pegasus). Pegasus is the registered proprietor of the land which is located 25 kilometres north of Christchurch. The land is to be developed into a town (Pegasus Town) which is zoned to accommodate a population of approximately 5,000 people and will comprise approximately 2,000 residential sites and 300 retail/commercial sites. Pegasus Town’s proposed facilities include a 13 hectare recreation lake, 20 hectares of reserves, parks and open spaces, 105 hectares of conservation and wetland areas, a primary school and pre-school site, an 18 hole golf course, tennis courts, a surf club on Pegasus Beach, an aquatic centre and an equestrian centre. The acquisition of the shares will add to the Multiplex Group’s New Zealand property development portfolio and provide the ability to reduce the risk of being a sole developer.
[Decision number 200710009.] New Zealand Crane Group buys Tauranga land for Todd and Pollock subsidiaryNew Zealand Crane Group Limited, owned 18.5703% in the U.K., 13.4225% in Australia, and 68.0073% in Aotearoa, has approval to acquire 1.4 hectares at 15C Amber Crescent, Tauranga, Bay of Plenty for $3,750,000 from TP Group Limited owned by Rex David Pollock of Aotearoa.
The land “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”.
The OIO states:
In March 2006, the Applicant acquired the business of Todd & Pollock, a regional crane and trucking business located in Tauranga. The Applicant has entered into a short-term lease of the subject land and now proposes to exercise an option to purchase the freehold of the land. The Applicant carries on business of crane and access equipment hire, and haulage vehicle and related equipment hire. The acquisition of the Todd & Pollock business is part of the Applicant’s expansion strategy.
[Decision number 200710013.] Australia Post Superannuation Scheme buys lease over Murupara forestry landNZFIT Limited, owned in Australia by Australia Post Superannuation Scheme, has approval to acquire 82 hectares of leasehold at State Highway 30, Murupara, part of the Ponaua Block, Bay of Plenty for $720,000 from Tenon Industries Limited.
Tenon is owned · 28.0413% in the U.S.A. by minority shareholders · 4.4391% in the U.S.A. by Xylem Fund ILP · 12.7759% in the U.K. · 2.0194% in Australia · 0.2299% in Singapore · 0.1% in France. · 1.3347% by “various” other overseas shareholders in Tenon · 51.0598% in Aotearoa
The OIO states:
NZFIT Limited (NZFIT) holds a profit a prendre cutting right (an exempt interest under the Overseas Investment Act 2005) to harvest the first rotation of trees growing in the Ponaua Forest. NZFIT proposes to enter into a sub-lease of the land which will provide increased security, in terms of the rights of protection under the Property Law Act 1952, over this forestry investment.
(A “profit a prendre cutting right” is a right to cut trees and take the timber without ownership or other rights over the land.)
[Decision number 200710015.] Summary statisticsAll investments The value of investment approved in the year to February 2007 is considerably lower than for the previous February year, both gross and net (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets).
Investment involving land Both gross and net sales of land approved by the OIO during the years to February have reduced in area. Refusals (above) have risen in number, area and value.
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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