Overseas investment decision for case 201510027 - Carter Holt Harvey Group Limited

An overseas investment in sensitive land, being the Applicant's acquisition of:

• a freehold interest in approximately 41.5941 hectares of land at Kinleith Road, Kinleith
• a leasehold interest in approximately 17.7940 hectares of land at Rama Road, Whangarei
• a freehold interest in approximately 58.3910 hectares of land at 28 Union East Street, Whangarei
• a leasehold interest in approximately 1.1913 hectares of land at New Renwick Road, Blenheim
• a leasehold interest in approximately 0.5693 hectares of land at 173 Sala Street, Rotorua
• a leasehold interest in approximately 0.9067 hectares of land at Corner Church Road & SH1, Te Rapa
• a leasehold interest in approximately 0.7303 hectares of land at Corner SH10 & Kahikataeroa Drive, Kerikeri
• a leasehold interest in approximately 1.1860 hectares of land at 141 Central Park Drive, Henderson
• a leasehold interest in approximately 5.1281 hectares of land at Union East Street East Whangarei
• a leasehold interest in approximately 1.2280 hectares of land at 44 Commerce Street, Whangarei
• a leasehold interest in approximately 1.2967 hectares of land at 40 Waihi Road, Tauranga.

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Carter Holt Harvey Nelson Sawmill Limited which owns or controls a freehold interest in approximately 445.8398 hectares of land at Eves Valley Road, Brightwater

An overseas investment in significant business assets, being the acquisition of the Woodproducts New Zealand and Carters assets and businesses currently owned by Carter Holt Harvey Limited and related companies.

Rank Group Investments Limited
Graeme Richard Hart, New Zealand (100%)

Carter Holt Harvey Limited
Graeme Richard Hart, New Zealand (100%)

This application relates to the proposed initial public offering (“IPO”) for the building supplies group (“BSG Business”) currently owned by Carter Holt Harvey Limited (“CHH”) and related companies.  The IPO will result in the BSG Business being listed on both the New Zealand and Australian Stock Exchanges (NZX/ASX) and the listed entity likely becoming an overseas person (because overseas persons are expected to acquire 25% or more of the company through the IPO).

Many of the benefits likely to result from the proposed investment flow from the listing of the BSG Business on the NZX. These benefits include the creation of additional roles at CHH Group, the opportunity for New Zealand retail and institutional investors to obtain an ownership stake in a large wood products business and the advancement of the ‘Building Capital Markets’ work stream of the New Zealand Government’s ‘Business Growth Agenda’.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Jobs
17(2)(b) – Indigenous vegetation/fauna
17(2)(c) – Trout, salmon, wildlife and game

Overseas Investment Regulations 2005
28(f) – Advance significant Government policy or strategy
28(i) – Economic interests
28(j) – Oversight and participation by New Zealanders