| Decision | Consent Granted Section 12(b) Overseas Investment Act 2005 Section 13(1)(a) Overseas Investment Act 2005 |
|---|---|
| Decision date | 28 February 2011 |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100.0% of the shares of Mega Harvest International Limited which owns or controls a freehold interest in 12,653.0079 hectares of land at Mangakahia Forest Estate. An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 100.0% of the shares of Mega Harvest International Limited, the maximum consideration of which will be US$77 million. |
| Consideration | Maximum US$77 million |
| Applicant | Greenheart Group Limited Sino-Forest Corporation (58.58%) Hong Kong Public and various other overseas persons (41.42%) |
| Vendor | Sino-Forest Corporation Canada Public (30.0%) United States Public (20.9%) Paulson & Co, United States of America (16.3%) Various overseas persons (13.2%) Davis Advisors, United States of America (12.8%) Singapore Government, Singapore (6.8%) |
| Background | Sino-Forest wishes to progress the Sino-Forest Group's expansion in areas outside China. Sino-Forest and the Applicant have determined that the Applicant is the appropriate international expansion vehicle, given that it already has overseas interests in Suriname. Sino-Forest will focus on forestry investments and product distribution in China. By transferring the Forest Estate to the Applicant and establishing the Applicant as the Sino-Forest Group's international expansion vehicle, the Applicant will be in a position to focus on international asset acquisition opportunities, and expansion into new markets. The Forest Estate will be consolidated with the Sino-Forest Group's existing and future international assets, allowing for the more effective and focussed management and resourcing of the Forest Estate and other investments. 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 Overseas Investment Regulations 2005 |
| More information | Adrien Hunter Chapman Tripp PO Box 2206 AUCKLAND 1140 |