| Decision | Consent Granted Section 12(a) Overseas Investment Act 2005 Section 13(1)(c) Overseas Investment Act 2005 |
|---|---|
| Decision date | 28 April 2010 |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of a leasehold interest in 3.4698 hectares of land at 250-270 Flanagan Road and 95 Tegal Rd, Drury, Papakura. An overseas investment in significant business assets, being the Applicant’s acquisition of property in New Zealand used in carrying on business in New Zealand with assets value exceeding $100m, that property being a leasehold interest in nine properties, including sensitive land. |
| Consideration | $133,200,000 |
| Applicant | NZ Poultry Enterprises Limited Australian Public (42.9209%) United States Public (30.3795%) New Zealand Public (15.1691%) United Kingdom Public (6.989%) Various overseas persons (4.5415%) |
| Vendor | Manu Fund Limited Phillip George Nevell, New Zealand (50.0%) Timothy Mark Fitzgerald, New Zealand (50.0%) |
| Background | The Applicant indirectly owns the freehold interest in the relevant land and all of the shares in Tegel Foods Limited (Tegel), a fully integrated poultry producer involved in the breeding, hatching, feeding, growing, processing, and marketing of chicken and turkey in New Zealand. Tegel's products include fresh, frozen and cooked whole chickens, chicken portions, and other value added products. Tegel has entered into an agreement with Manu Fund Limited (Manu Fund) pursuant to which Tegel will sell, and Manu Fund will purchase, nine freehold properties owned by Tegel; and Tegel will lease back the nine properties pursuant to long-term leases. The sale and lease back of the properties will enable Tegel to free up capital to invest and fund other capital investment projects while still providing security of tenure for its breeding, hatching, rearing, growing, milling and processing operations. The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors: Overseas Investment Act 2005 |
| More information | Sarah-Jane Puch David M Flacks |