| Decision | Consent granted Section 13(1)(c) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | Overseas Investment Office |
| Decision Date | 28 June 2021 |
| Pathway(s) | Significant business assets only National Interest assessment |
| Investment | (i) Up to 47.3% of newly issued common stock in Hertz Global Holdings Inc to be acquired by CK Amarillo LP (ii) Up to 2.1% of newly issued common stock in Hertz Global and up to 100% of the Series A Preferred (non-voting) stock to be acquired by investment funds affiliated with Apollo Capital Management LP |
| Consideration | (i) Up to $2.940 billion (ii) Up to $2.176 billion |
| Applicant | CK Amarillo LP Funds affiliated with Apollo Capital Management, L.P |
| Vendor | Hertz Global Holdings, Inc. United States of America (75%) Canada (12.5%) Various (12.5%) |
| Background | The Vendor operates the Hertz, Dollar and Thrifty vehicle rental brands worldwide including New Zealand and is one of the worlds most recognised vehicle rental brands. In March 2020 Hertz Global Holdings Inc and certain of its subsidiaries (the Hertz Debtor Group) entered Chapter 11 bankruptcy in the USA. The Bankruptcy Court selected a combined bid for reorganisation made by Certares Opportunities LLC (Certares), Knighthead Capital Management, LLC (Knighthead) and Apollo Capital Management LP (Apollo) as the best and final bid. Apollo is part of the Apollo Global Management Inc group which is a global alternative investment management firm is listed on the NYSE. Knighthead is an investment advisory firm providing long and short term investments in event driven and distressed credit. Certares is a private investment platform dedicated to investing in the travel, tourism, and hospitality sectors. The Applicant has satisfied the investor test criterion. The Minister of Finance has determined that the Investment is not contrary to New Zealand’s national interest. |
| More information | Mark Stuart Glenn Shewan |