Foreign investment in Aotearoa/New Zealand

Overseas Investment Office – September 2014 Decisions

New Chinese-Owned Hotel For The Auckland Waterfront

In what is probably the most significant decision for the month of September, Fu Wah New Zealand Limited Hong Kong (SAR) (90%) and China, People’s Republic of (10%) received approval for the acquisition of a leasehold interest in approximately 0.6 hectares of land at 99-177 Halsey Street, Wynyard Quarter, Auckland. Approval was also received for an overseas investment in significant business assets, being the establishment of a business in New Zealand by the Applicant where the total expenditure required before commencing business exceeds $100m. Both the cost of commencing business and rent consideration were withheld under s(9)(2)(b)(ii) of the Official Information Act.

The OIO states: “The Applicant’s parent company, Fu Wah International Enterprises Group Limited, a Hong Kong registered company, is an experienced commercial property developer. The land is owned by Auckland Waterfront Development Agency Limited (‘Waterfront Auckland’), on behalf of the Auckland Council and the public of Auckland. Waterfront Auckland is responsible for the redevelopment of around 45 hectares of waterfront property including the Wynyard Quarter. The Applicant intends to enter into a lease with Waterfront Auckland and to build an internationally recognised five-star hotel on the land”.

International hotel chain Hyatt will operate the hotel. Further details and the expected positive political response were reported by Anne Gibson in the New Zealand Herald (21/11/14): “US multinational hotel chain Hyatt has been named as the new operator of a luxury $200 million Auckland waterfront hotel to be developed by a Chinese property group. PM John Key and Chinese president Xi Jinping are today unveiling plans for the Wynyard Quarter hotel to be branded a Park Hyatt and, in a written statement, Madam Chan Lawai, Chairwoman of Beijing-headquartered Fu Wah International Group, said she was glad to ‘commence such a great project in New Zealand. New Zealand has always been friendly to China and is one of the first countries to have signed a trade agreement with China’.

“The hotel will be built on the Team New Zealand headquarters’ Halsey St site, between the distinctive pale Lighter Quarter apartments and the Viaduct Events Centre, opposite the new ASB North Wharf where Halsey St meets Madden St and Jellicoe St. An application to develop the hotel has been made to Auckland Council, with construction expected to start soon and the hotel to open in 2017, a written statement said. The six-level, 25,000sq m, 190-room hotel will have three restaurants, spa and fitness centre, 25m pool and was designed by Singaporean-headquartered architects AR+D working with much-awarded New Zealand business, Bossley Architects. The interior will be by Conran + Partners.

“Hyatt was in Auckland for about three decades, managing the big hotel on Waterloo Quadrant opposite Old Government House near the High Court. The Hyatt was re-branded a Pullman earlier this decade. In January 2011, the Herald reported that the Hyatt sign had disappeared from the roof of one of Auckland’s top hotels and after 26 years the property has a new name. Chiu Yung, Fu Wah President and the son of Madam Chan, said the new hotel would be a landmark on the waterfront and would be built to very high environmental standards. The group will invest around $200 million in the project, with $2.5 million committed to the development of a public space and art display in the area around the hotel in Wynyard Quarter, to give people access to the marina and water.

“‘The site of the hotel is special – right on the water of one of the world’s finest harbour settings – so we feel a responsibility to build a landmark hotel. The design is one which meets high environmental standards with an emphasis on unique New Zealand features developed in collaboration with the one of New Zealand’s most highly regarded architects. We are thrilled to be involved in a building and hotel of this scale and quality. We are very pleased to have partnered with the Park Hyatt brand. We recently invested into their Melbourne hotel. Their commitment to five star excellence dovetails with the market niche that fits a hotel with the significant features of this offering. This is Fu Wah’s first investment into New Zealand but we are exploring a number of other projects. We see significant potential and want to be long-term investors in high quality projects. We are grateful we were able to mark the project by unveiling the model at an event involving China’s President and New Zealand’s Prime Minister. This is very much a partnership between our two countries’, he said in a written statement, released this morning.

“Larry Tchou, Senior Advisor, Asia Pacific, Hyatt Hotels & Resorts said the company was excited to share the announcement of a Park Hyatt hotel in Auckland. ‘We are grateful to further our relationship with Fu Wah, the owner of Park Hyatt Melbourne, with this new partnership which will bring the first Park Hyatt hotel to New Zealand. Auckland is a key tourist and business destination and we are honoured to collaborate with Fu Wah and Auckland Waterfront for this landmark luxury development. This has been an exciting year for the Park Hyatt brand and we are committed to continue to create presence in culturally rich cities like Auckland’, he said.

“John Dalzell, Chief Executive of the Auckland Council-controlled entity Waterfront Auckland, said the five star international quality hotel would be an exemplar project of what the Wynyard Quarter revitalisation is all about. ‘The bar was set high with this project: an exceptional design to complement the award winning designs of other buildings and public spaces delivered to date; an investor that was willing to look long term; and an appreciation of the importance of building sustainably. Fu Wah has stepped up on all accounts and the result will be a true international standard hotel that, over time, will become a key catalyst for economic activity on the waterfront and the Auckland region as a whole'”.

Tiongs Buy Another 337 Hectares Near Dannevirke

Ernslaw One Limited Tiong Family, Malaysia (100%) received approval to acquire a freehold interest in 337.6 hectares of land at Franklin Road and Route 52, Ti Tree Point, Dannevirke. The vendor was Sunrise Agriculture Limited Ian Francis Millner, New Zealand (38.9%), Alison Joy Franklin, New Zealand (38.9%) and James Peter Millner, New Zealand (22.2%); consideration was $1,225,000. The OIO states: “The land is being acquired for conversion into forestry. The Applicant intends to establish a pine forest on the land”.

Although not that active in recent years, the Tiong family have been significant purchasers of forestry land here in New Zealand over the past few decades and approximately ten years ago were estimated to be one of the largest forestry owners in Aotearoa, owning over 100,000 hectares. See our decision summaries in the 1990s for numerous examples of their purchases here. As reported previously in Watchdog, the Tiong family is one of Malaysia’s most powerful and wealthy families. They own controversial rainforest logger, Rimbunan Hijau, newspapers and magazines. Details of their transgressions resulting in their most recent appearance as a Roger Award finalist are here (Ernslaw One came third in the 2004 Roger Award; the Judges’ Report is online here).

Fletchers Plan Mangere Subdivision

Fletcher Residential Limited New Zealand Public (44%), Australian Public (30%) and various overseas persons (26%) received approval acquisition of a freehold interest in approximately 32.8 hectares of land at Oruarangi Road, Mangere, Auckland. The consideration was withheld under s(9)(2)(b)(ii) of the Official Information Act; the vendor was Gavin H Wallace Limited New Zealand (100%). The OIO simply states: “The Applicant intends to subdivide the land and create residential housing on the land”. See our November 2013 commentary for details of Fletchers’ last significant land purchase in Auckland.

Transpacific Leases More Of Waiheke (And Other Sites)

Transpacific Industries Group (NZ) Limited Australian Public (78.4%), United Kingdom Public (10.9%), various overseas persons (7%) and New Zealand Public (3.7%) received approval for the acquisition of:

a freehold interest in approximately 0.6 hectares of land at 27 Seaview Road, Gracefield, Wellington; and
a leasehold interest in approximately 0.1 hectares of land at 53 Port Road, Lower Hutt, Wellington; and
a leasehold interest in approximately 0.6 hectares of land at 108-110 Ostend Road, Waiheke Island.

Consideration was again withheld under s(9)(2)(b)(ii) of the Official Information Act. The vendors were:

Seaview Recycle and Transfer Station Limited Robert McWhirter and Diane McWhirter, New Zealand (100%);
BP Oil New Zealand Limited North American Public (38%), United Kingdom Public (36%), European Public (14%) and various overseas persons (12%); and
Auckland City Council New Zealand (100%)

The OIO states: “Transpacific Industries Group (NZ) Limited (‘Transpacific’) was one of New Zealand’s leading recycling, waste management and industrial services companies, providing a range of environmental services to industrial, municipal and commercial customers. Transpacific sought to acquire the land at Gracefield and Waiheke Island to operate refuse transfer stations. The land at Port Road contains part of an office building used by Transpacific”.

Readers may recall that here in New Zealand Transpacific was better known as Waste Management which was bought by Transpacific in a controversial takeover in 2007. See our June 2006, September 2007 and March 2009 commentaries for more background on this and previous shareholder changes. Transpacific’s operations in New Zealand have not been without controversy. Waiheke Island residents asked the Auditor General to investigate the decision-making process of Auckland City Council in awarding the island’s waste contract to Transpacific. The Auditor General however sided with the Council*. Transpacific’s siting of a recycling depot behind a pub and across the road from a community hall in Waipapa has also drawn criticism. Transpacific also operates Canterbury’s controversial Kate Valley regional landfill.

* The Auckland City Council and its officials won the 2009 Roger Award’s Accomplice Award for contracting out Waiheke Island waste services from a local community company to Transpacific. See the 2009 Judges’ Report for more details. In June 2014 the OIO approved the sale of Transpacific Industries to the Chinese Government in a $950m deal.

And Two More Rubbish Approvals

In another refuse-related decision, Living Earth Limited New Zealand Public (42%), Australian Public (39.2%), North American Public (9.8%), United Kingdom Public (5.5%) and various overseas persons (3.5%) received approval for acquisition of:

a leasehold interest in approximately 12 hectares of land at Puketutu Island, 600 Island Rd, Mangere, Auckland; and
a leasehold interest in approximately 7.1 hectares of land at Metro Place, Bromley, Christchurch.

The vendors were Te Motu a Hiaroa Charitable Trust New Zealand (100%) and Christchurch City Council New Zealand (100%) respectively. Consideration was “withheld under section 9(2)(b)(ii) of the Official Information Act”.

The OIO states: “Living Earth Limited is a green waste and food waste processing and composting company. It acquired a leasehold interest in land at Puketutu Island and built a composting facility at a cost of approximately $4.2 million. The Applicant also acquired a leasehold interest in land at Metro Place, Bromley, Christchurch, as a result of a tender by the Christchurch City Council to design, procure the building of, and operate an organics processing plant. The Applicant annually receives approximately 100,000 tonnes of green waste and food waste, which is processed and converted into high quality compost and other gardening mix products”.

Japanese Buy Northland Forestry Block

Summit Northern Plantation Limited Sumitomo Corporation, Japan (100%) received approval for the acquisition of a freehold interest in approximately 308.6 hectares of land at 599 Awaroa Road, Broadwood. The vendor was Robert Hugh Buchanan New Zealand (100%). Consideration was again “withheld under section 9(2)(b)(ii) of the Official Information Act”. The OIO states: “The Applicant is acquiring a 308.6 hectare forestry block in Northland in order to achieve a better age class spread within its existing forestry portfolio and ensure that it can continue to meet its supply commitments to local mills”. See our November 2012 commentary for details of Sumitomo’s last forestry purchase here.

Americans Sell Malt Company To The French

Malteurop Groupe SA France (100%) received approval for the acquisition of rights or interests in up to 100% of the shares of ADM Malting LLC which owns or controls:

a freehold interest in approximately 5.9 hectares of land at 56 Wings Line, Marton; and
a freehold interest in approximately 3.3 hectares of land at 8 Bremners Rd, Ashburton.

The vendor was Archer Daniels Midland Company United States of America (100%). Consideration was somewhat surprisingly released, being $17,982,000. The OIO states: “Malteurop Groupe SA is a European based corporation specialising in the malt industry. The overseas investment was part of a larger international transaction between Malteurop Groupe SA’s and US-based ADM Malting LLC, with the acquisition of the New Zealand assets a downstream effect of that transaction. The Applicant planned to install an additional silo on the relevant land”.

However, according to NZfarmer.co.nz under the heading “Charge Your Glass To Marton’s Malt”(27/3/14), Malteurop has owned these plants for some time: “Every time you drink a New Zealand brewed beer, there’s a high chance the malt came from Marton. The Rangitikei town is home to New Zealand’s largest malting factory, Marton Maltings, which is owned by Malteurop – the world’s leading malt producer. The Malteurop Group has a presence in North America, Oceania, Asia and 13 European countries, with 24 industrial sites and 830 employees spread across the world. The company owns three malt and barley facilities in New Zealand. Its Marton factory, which employs 12 staff, is the production site where it transforms barley into malt. In Ashburton, there is a facility for barley and malt handling. In Irwell, there is a barley breeding facility, where new varieties are bred for export.

“The factory, located on Wings Line, was built in 1979 by The Canterbury Malting Company. This company was then owned by New Zealand’s two largest brewing companies – DB and Lion Nathan. The two breweries struggled to manage the malting factory, so it sold the business to the International Malting Company – a French company – in 2000. Six years later, International Malting decided to sell the malt production facilities to Archer Daniels Midland (ADM), one of the world’s major grain traders. But as malt wasn’t the company’s core business, the malting plants in Australia and New Zealand were sold in 2008 to Malteurop…”

Waste Water Problem

And it’s not just the timing of Malteurop’s investment in these facilities that is in question, as it appears the company’s waste water discharge is something less than certain. As reported in the Wanganui Chronicle by Zaryd Wilson (20/12/14): “Trade waste has been confirmed as the main factor in persistent consent breaches by Rangitikei District Council. The Rangitikei Council is in breach of its consent from Horizons Regional Council to discharge from its wastewater system into the Tutaenui Stream, due to excessive levels of ammonia and discolouration of discharge water. It will be months before the problem is fixed. It has also been revealed that records of what trade waste has been put through the wastewater treatment system have not been kept for several years, making the environmental impact hard to calculate.

“The District Council commissioned Opus to look into the effect of leachate from the Bonny Glen dump, and Opus confirmed the leachate was the main contributor to the consent breaches. Leachate is put into the system which mixes with the town’s wastewater before being discharged. But the Opus report said leachate tanker logs and leachate strength data from between 2006 and 2013 could not be provided. Leachate is put into the waste water system about every second day under a ‘gentleman’s agreement’ between the Council and Bonny Glen operators Midwest Disposals Ltd. There is no signed contract between the two parties. Some days leachate can contribute almost 70% of the ammoniacal nitrogen levels which regularly exceed consented levels.

“In 2010, the Council and multinational malting company Malteurop signed a trade waste agreement. Malteurop contributed $500,000 to the upgrade of the wastewater plant and pays $40,000 annually towards operating costs. The agreement limits the strength and volume of Malteurop’s waste but the report again revealed records were not being kept. ‘Only one trade waste sample result was available and no flow data. Therefore the actual flows and loads contributed by Malteurop have not been possible to calculate’, the report said, and it added there was a need to build a further anaerobic pond or pre-treatment facility for the leachate.

“Horizons Environmental Protection Officer Robert Rose confirmed the District Council had been in breach of its consent, but it appears RDC will not yet face penalties. ‘Horizons has requested RDC to outline what they’re going to do to address this issue. We expect a response by the end of January’, Mr Rose said. Rangitikei Asset and Infrastructure Committee Chair Dean McManaway said: ‘It’s pretty much telling us what we already know. We’ve got to deal with it, we cannot let this go on. The easiest solution would be to not accept the waste, but for the ‘gentleman’s agreement’ that we do take it. We’re going to have to look at a way to address the ammonia and the colour in the leachate before it goes into our ponds.

“‘At the end of the day, they are going to have to pay. There’s going to be quite a big outlay for them’. Mr McManaway said it was a worry that records of what was being put through the system had not been maintained. Mayor Andy Watson said the Bonny Glen leachate was only part of the problem and the effectiveness of the whole wastewater system needed review”. Perhaps Malteurop is the other part of the problem? See our July 2000 commentary for details of Archer Daniels Midland’s original purchase of the Canterbury Malt Company.

South Pacific Pictures Changes Hands

DLG Acquisitions Limited Liberty Global Plc, United Kingdom (50%) and Discovery Communications Inc, United States of America (50%) received approval for the acquisition of rights or interests in up to 100% of the shares of All3Media Holdings Limited which owns or controls a leasehold interest in approximately 1.4 hectares of land at 7 and 8 Tolich Place, Henderson, Auckland (“the Investment”). The vendors were existing Shareholders of All3Media Holdings Limited United States Public (38%), various overseas persons (33%) and United Kingdom Public (29%). The asset value of South Pacific Pictures Investments Limited’s total gross assets was $19m as at 31st August 2013, as per the Statement of Financial Position in its published Annual Report for the year ended 31 August 2013.

The OIO states: “All3Media Holdings Limited is the parent company of South Pacific Pictures Investments Limited (‘SPP’), a New Zealand television and film production company. The Investment will benefit the stability of SPP’s business operations in New Zealand. The Applicant intends to be a committed, long-term owner of All3Media Holdings Limited and its group companies, including SPP.”. Anne Gibson in the New Zealand Herald reported further details of this deal (1/11/14):

“A land deal has been approved as part an overseas broadcasting giant’s purchase of popular TV show Shortland Street’s production house. The Overseas Investment Office has granted Britain and America’s DLG Acquisitions permission to buy West Auckland land classified as sensitive from All3Media, the international giant which now owns South Pacific Pictures. DLG is owned by Britain’s Liberty Global and the USA’s Discovery Communications. The Office said All3Media Holdings is the parent company of South Pacific Pictures Investments, the big New Zealand television and film production company.

“John Barnett of South Pacific clarified the issue. ‘The recent OIO approval with regard to South Pacific Pictures was not about the sale of the land and buildings. South Pacific Pictures is a tenant on this real estate … No sale of land occurred, nor is any contemplated’. The investment will benefit the stability of SPP’s business operations in New Zealand. The applicant intends to be a committed, long-term owner of All3Media Holdings and its group companies, including South Pacific Pictures,” said the decision released today which also put South Pacific’s total gross assets at $19 million. The land is at 7 and 8 Tolich Pl in Henderson where South Pacific has its state-of-the-art drama studios, post-production offices and facilities”.

English Increase Their Shareholding In Tru-Test

D KTT Limited Partnership United Kingdom Public (57.2%), Australian Public (39.9%) and New Zealand Public (2.9%) received approval for the acquisition of rights or interests in up to a further 27.28% of the issued share capital of Tru-Test Corporation Limited, resulting in the Applicant controlling up to 49% of the issued share capital of Tru-Test Corporation Limited, the value of the assets of Tru-Test Corporation Limited and its 25% or more subsidiaries being greater than $100m.

The vendors were Existing shareholders of Tru-Test Corporation Limited other than KTT Limited Partnership New Zealand Public (90%) and Australian Public (10%); the consideration was $6,000,000. The OIO states: “The Applicant considers that the increased investment in Tru-Test Corporation Limited (TTC), an agricultural technology company, will further facilitate TTC’s strategy of continued technological development, innovation, job growth and export growth”. Further details were reported in the New Zealand Herald (9/10/14):

“Agri-tech company Tru-Test Corporation has completed a $10 million share buyback while the stake of major shareholder KTT has been boosted from 21.7% to 39.6%. KTT is a limited partnership owned by Australian private equity firm Kestrel Capital. Under the share deal approved at the private company’s recent annual meeting, Tru-Test acquired 9.5 million of its shares – 23.6% of its capital, at $1.05 a share. That is the same price paid in February to competitor Gallagher Group, which sold down its entire 19.9% stake after two failed attempts to gain regulatory approval for a takeover bid.

“The Board’s rationale for the latest share buyback was to provide its 155 shareholders with a chance to shed some shares in the largely illiquid stock. The company cancelled shares acquired in the buyback, which was funded by the sale of 5.7 million new shares to KTT and a $4 million Bank of New Zealand loan. An independent adviser’s report on the deal by Simmons Corporate Finance said the positive aspects outweighed the negative. KTT’s voting rights increased under the Gallagher buyback but it was granted a Takeovers Panel waiver from having to sell these until other shareholders voted at the Annual Meeting to allow it to retain them. Simmons Finance said the buyback was unlikely to reduce Tru-Test’s attraction as a takeover target and forcing KTT to sell its additional voting rights could have put downward pressure on the share price.

“Tru-Test is the world leader in milk metering with more than 90% global market share, holds over half the global market for electronic animal weighing, is a dominant player in electric fencing, and is a major contract manufacturer. Its latest financial results for the year ending March 31 show revenue significantly boosted by strong sales in the US and Latin American markets and also by last year’s $74.5 million acquisition of Dairy Technology Services, which manufactures farm holding tanks for the local dairy industry.

“Revenue from continuing operations was boosted by a third to $130 million and earnings before interest, tax, depreciation and amortisation (ebitda) rose 177% on the previous year to $14.8 million. Net profit for the year was $2.1 million. Board Chairman John Loughlin said there had been a step-change in the company’s underlying revenue and projected earnings as a result of last year’s DTS and Radian purchases. He said earnings from DTS were New Zealand-based and that helped offset some of the currency hit Tru-Test took on its exports. He said the group was still looking for further acquisitions”.

Swiss Buy 400 Hectare Te Awamutu Farm

Kawakawa Farm Management Limited Switzerland (87.5%) and New Zealand (12.5%) received approval for the acquisition of a freehold interest in approximately 400 hectares of land at 997 Ngaroma Road, Te Awamutu. The vendors were Alan Stewart Browne and Toni Rebecca Browne New Zealand (100%); the consideration was $4,400,000. The OIO states: “The Applicant intends to take over and develop the farming operation on the land”.

Other September Decisions

Lynden Investments Group Pty Limited as Trustee of the Mackenzie Family Trust (NZ) Denis George Mackenzie, Australia (50%) and Linda Ruth Mackenzie, Australia (50%) received approval for the acquisition of Lot 18 at Closeburn Station, Queenstown, being an estate in fee simple in approximately 1.9 hectares of land, together with an estate in fee simple in a 1/27 undivided interest in approximately 1,002 ha of land at Closeburn Station. The vendor was Southern Sun Properties Limited Guenther Andreas Raedler, New Zealand (100%): Consideration was again “withheld under section 9(2)(b)(ii) of the Official Information Act”.

The OIO states: “The Applicant is acquiring Lot 18 at Closeburn Station as a platform to construct a residence for use by the beneficiaries of the Applicant. Closeburn Station is a rural subdivision comprising 27 residential lots with the balance of the property being a sheep and beef farm. As a result of the investment, the Applicant will provide significant and ongoing support to regional efforts to control the spread of wilding pines. Wilding pines threaten and replace native beech forests and tussock (among other things) in the Queenstown area including on Closeburn Station”.

Plaman Resources Limited Malaysian Public (44.5%), Panayiotis Plakidis, Australia (15%), George Kerry Manolas, Australia (15%), The Federal Land Development Authority (14%), Versatile Paper Boxes SDN BHD, Malaysia (4.4%), MCS Microsystems SDN BHD, Malaysia (2.9%), TL Technology Research (HK) Limited, Hong Kong (SAR) (2.5%) and Razali Bin Ismail, Malaysia (1.8%) received approval for the acquisition directly or indirectly of a freehold interest in 42.4 hectares of land at 720 Moonlight Road, Middlemarch, Otago. The vendor was Holcim (New Zealand) Limited Swiss Public (50%), various overseas persons (34%), United Kingdom Public (13%) and United States Public (3%): consideration was $650,000.

The OIO states: “The Applicant is seeking to acquire the business of Featherston Resources Limited, a New Zealand company currently subject to a deed of company arrangement. As part of its acquisition of this business, the Applicant intends to acquire the land. The Applicant is seeking to acquire the land to facilitate its mining operations in New Zealand”. Featherston Resources was formerly an Australian-owned fertiliser processor which was placed into receivership in early 2014 by a shareholder and former employee.

Simon Hartley in the Otago Daily Times (22/1/14) reports on local shareholder dissatisfaction to the proposed Malaysian purchase of the company: “The fate of failed diatomite miner Featherston Resources near Dunedin may be decided this week, as factions look to get a controlling stake through a creditors’ vote in the fertiliser manufacturer, which was launched in 2011. Vying Asian companies want to buy out Featherston, by paying its numerous creditors, while some historical shareholders have warned the administrators they will oppose the proposals.

“Crucial to the situation is that creditors, some of whom are shareholders, will vote on whether to accept or reject either of the dual proposals being put forward by appointed administrators Rodgers Reidy Ltd tomorrow in Auckland. Despite projections of multimillion-dollar annual sales targets, Australian-based and privately-owned Featherston achieved only limited sales of diatomite for domestic or export use and raised just over $100,000 over two years. Featherston is in administration and receivership and a creditors meeting is scheduled for Auckland tomorrow. Among more than 200 shareholders – and creditors – are many from around the South Island.

“Auckland-based Rodgers Reidy has proposals for creditors to decide on from separate Malaysian and Hong Kong investors, who are offering respectively $A4.8 million and $A4.15 million, to be used to pay creditors, but leaving shareholders open to compulsory acquisition or with diluted holdings. The proposal by Plaman Group, representing a Malaysian listed company, and with Australian banking interests, wants to take Featherston out of administration, which would be to the detriment of long-suffering shareholders, who have poured millions into the company, but who want to retain their stake and help rebuild Featherston. They would get an unspecified cash payment, but otherwise be bought out.

“The second $A4.15 million proposal, by Ashlaw Legal Services Pty Ltd, on behalf of a Hong Kong investor, would dilute shareholders’ interests by about two-thirds. Joint administrator for Rodgers Reidy Ltd in Auckland, Paul Vlasic, organised the creditors meeting and said in a ”supplementary report” to shareholders last week, obtained by the ODT, that Featherston had ”known creditors”, owed in total $A4.18 million ($NZ4.43 million). When contacted yesterday, Mr Vlasic said money had been set aside under the Plaman proposal to buy out shareholders, but it was ‘complex’ to determine exactly the amount per dollar invested, as some individuals would be paid as part of groups or trusts.

“He hoped to be in a position after the creditors meeting to disclose more detail. In a private note circulated to Featherston shareholders in recent days, obtained by the ODT, a major shareholder who criticises the Plaman Group offer describes themselves as ‘ … one of a number of very angry shareholders who are appalled at the behaviour of the mandated financial advisers to the company. You will find there is an active and informed group of dedicated and committed Kiwi shareholders, whom I am sure will be joined by their Australian counterparts in vigorously opposing your [administrator’s] recommended course of action and the Plaman Group, no matter what happens at your proposed watershed [creditors] meeting on Thursday’, the shareholder said.

“Mr Vlasic noted that creditors would be paid in full under the proposals, but under slightly different terms, while if Featherston was placed in liquidation ‘no dividend is expected to be paid to any class of creditor’. Nor, under liquidation, would it be possible to sell or transfer the diatomite mining permit, issued by Government agency New Zealand Petroleum & Minerals, which covers the diatomite mine in the Maniototo. Further muddying the situation is Supreme Court litigation in Australia over the receivership, and roles of receivers and directors”.

And, finally for September, Fletcher Bunnings Limited Wesfarmers Limited, Australia (100%) received approval for the acquisition of a freehold interest in approximately 1.6 hectares (or such lesser amount following a proposed boundary adjustment) of land at 494 Rosebank Road, Avondale, Auckland (“the Land”). The vendor was 494 Rosebank Road Limited Partnership New Zealand (100%): consideration was withheld under section 9(2)(b)(ii) of the Official Information Act. The OIO states: “The Applicant operates a network of hardware stores trading under the brand names ‘Bunnings’, ‘Bunnings Warehouse’ and ‘Bunnings Trade Centres’. The Applicant intends to build a new trade centre on the Land which will employ approximately 20 people”.

Campaign Against Foreign Control of Aotearoa,
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