| Decision | Consent granted Sections 13(1)(c), 20A(1) and 18A Overseas Investment Act 2005 |
|---|---|
| Decision maker | Toitū Te Whenua Land Information New Zealand |
| Decision date | 13 November 2023 |
| Pathway(s) | Significant business assets National interest assessment |
| Investment | Acquisition of the book of mortgage, home loan and other similar loan facilities to customers of the wealth and personal banking business of The Hongkong and Shanghai Banking Corporation Limited (New Zealand Branch) |
| Asset value | Approximately $1,250,000,000 |
| Applicant | Pepper New Zealand Limited Australia 45% United States of America 16% Cayman Islands 8% Peoples Republic of China 7% United Kingdom 4% Various 20% |
| Vendor | The Hongkong and Shanghai Banking Corporation Limited Asia 47% United Kingdom 23% North America 18% Europe 11% Rest of world <1% Unknown <1% |
| Background | The Applicant is an alternative home loan provider in New Zealand and is an indirect wholly owned subsidiary of Pepper Money Limited which is listed on the Australian Securities Exchange. The Applicant is acquiring the investment following the Vendor’s announcement in June 2023 that the Vendor is exiting its wealth and personal banking business in New Zealand. The investment consists of loans to approximately 2,050 New Zealand retail customers being approximately 0.5% of the total market for residential mortgage loans in New Zealand. Consent was granted as the Applicant met the investor test and the Minister of Finance has decided that the investment is not contrary to New Zealand’s national interest. |
| More information | Alex Franks Chapman Tripp (Auckland) PO Box 2206 Auckland 1140 |