| Decision | Consent granted Section 12(b) Overseas Investment Act 2005 |
|---|---|
| Decision date | 28 March 2012 |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 85.1% of the shares of Daiken New Zealand Limited which owns or controls a freehold interest in 159.1421 hectares of land at Upper Sefton Road and Lower Sefton Road, Canterbury. |
| Consideration | $10,640,708 |
| Applicant | DAIKEN Corporation Japanese Public (97.37%) Unknown Overseas Persons, Various (2.63%) |
| Vendor | ITOCHU Corporation & ITOCHU New Zealand Limited Japanese Public (64.19%) Unknown Overseas Persons, Various (35.81%) |
| Background | The Applicant and ITOCHU Corporation began their joint venture arrangement in New Zealand in late 2008, incorporating Daiken New Zealand Ltd and acquiring the MDF manufacturing plant at Rangiora in early 2009. ITOCHU Corporation has now decided to close its New Zealand subsidiary (ITOCHU New Zealand Ltd), and to decrease its level of direct involvement in Daiken New Zealand Ltd. The Applicant wishes to purchase the shares being divested by ITOCHU. The joint venture ownership of the MDF manufacturing plant at Rangiora has already led to improved efficiencies and returns and the Applicant’s view is that those improvements will be further enhanced as a result of its acquisition of greater shareholding in Daiken New Zealand Ltd. The overseas investment transaction has satisfied the criteria in section 16 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 Overseas Investment Regulations 2005 |
| More information | Melissa Clark/Andrew Nicoll Martelli McKegg PO Box 5745 AUCKLAND |