Overseas investment decision for case 201710108 - Dragline Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100% of the shares in Mainland Poultry Limited (“Mainland Poultry”) which has a freehold or leasehold interest in approximately 635.1712 hectares of sensitive land at 17 locations throughout New Zealand; and

An overseas investment in significant business assets, being the Applicant’s acquisition of 100% of the shares in Mainland Poultry, being an acquisition of property in New Zealand used in carrying on business in New Zealand for consideration exceeding $100m, that property.

The Applicant has been formed for the purpose of undertaking the investment. It is ultimately owned by private equity fund Navis Asia Fund VII, LP (“Navis”) and the vendors.  

Mainland Poultry is a large, vertically integrated, egg-producing business that also rears layer hens and produces animal feed.  It (and its subsidiaries) has freehold or leasehold interests in sensitive land at 17 different locations throughout New Zealand that are used for egg-laying and chicken farming.

The Applicant intends to invest in Mainland Poultry in order to both assist it with making the transition from conventional cages earlier than required by law and to grow the business.

The benefits to New Zealand include:

• New Zealand oversight and participation in the overseas investment and the Applicant, as the vendors will have an approximately 25% ownership stake in the Applicant and its immediate parent company;
• a new full-time equivalent senior strategy role that will be created immediately following the overseas investment;
• capital expenditure to develop a recently acquired farm in the Waitaki District; 
• new jobs associated with the above farm; and 
• Navis has undertaken previous investments that have been or are of benefit to New Zealand in the education resources and retail menswear sectors.