| Decision number | 200620027 |
|---|---|
| Application number | 200620021 |
| Date | 11 August 2006 |
| Offeror/applicant | Nobilo Wine Group Limited |
| Ultimate applicant beneficial ownership | 100 percent - United States of America, Constellation International Holdings Limited |
| Beneficial overseas ownership | |
| - Asset current | 0 percent |
| - Asset proposed | 100 percent |
| - Share current | N/A |
| - Share proposed | N/A |
| Offeree(s)/seller(s) | M E Dick Limited 54.82 percent - New Zealand, Dick (Peter Allan) 45 percent - New Zealand, Dick (Malcolm Edward) 0.18 percent - New Zealand, Dick (Karen Gates) |
| Business activities | Agriculture - Horticulture & Fruit - Viticulture |
| Details of land involved | 58.55 hectares of leasehold situated at 128 Dicks Road, Spring Creek, Marlborough being part CTs MB4D/1212, MB32/279, MB4D/1180, MB6A/893, MB6A/895 and MB1A/209 (Marlborough Registry). |
| Regions involved | Nelson/Marlborough |
| Total consideration | $2,851,727 |
| Consent Sought | To acquire an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area. |
| Rationale | The application has been approved as it met the criteria. The Overseas Investment Office is satisfied that the applicant has significant business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Overseas Investment Office is further satisfied that the persons who exercise control over the applicant are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987. Nobilo Wine Group Limited (Nobilo) carries out a fully integrated viticulture business, which includes the growing and development of grapes, and the manufacture, importation, distribution and sale of red and white wine within New Zealand and, increasingly, for export markets. Nobilo advises that export growth has been constrained by grape supply. Nobilo proposes to secure additional grape supply and increased processing capacity. Nobilo currently has a variety of interests in New Zealand, including land utilised for the growing of grapes, and as wineries and production sites. In total it either owns or leases approximately 790 hectares of vineyards, in New Zealand predominantly in the Hawkes Bay, Marlborough and Auckland regions. Nobilo also sources grapes from contract growers from around 1,400 hectares in area. Nobilo proposes to enter into a partnership with the existing owner of the subject land under which the partnership will lease the subject land to undertake a viticultural development. Nobilo advises that the property has a total of approximately 98 plantable hectares which will be planted in Sauvignon Blanc vines. The proposed acquisition will provide Nobilo with an increase in grape supply which will allow it to continue to develop its export wine markets and enhance the reputation of New Zealand wine overseas. This is likely to result in significant increases in employment, processing of grapes and export levels. The proposal is likely to result in the following benefits:
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| Contact | Robert Parker/Justine Tuite Chapman Tripp P O Box 2206 AUCKLAND |