Applicant
Phaunos Timber Fund Limited
Case number(s)
200920086
Decision date
Type
Decision
DecisionConsent Granted
Section 12(b) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005
Decision date11 February 2010
Investment

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 35.0% of the shares of Matariki Forestry Group which owns or controls:

  • a leasehold interest in 13770.5589 hectares of land in the Northland, Bay of Plenty and Gisborne/Hawkes Bay regions; and
  • a freehold interest in 78617.3020 hectares of land in the Northland, Bay of Plenty and Gisborne/Hawkes Bay, Manawatu, Marlborough, Otago and Southland regions.

An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 35.0% of the shares of Matariki Forestry Group, the consideration of which exceeds $100m.

Consideration$167,000,000
ApplicantPhaunos Timber Fund Limited
United Kingdom (except Isle of Man and the Channel Islands) (34.37%)
Luxembourg (28.96%)
Sweden (7.15%)
Netherlands (5.2%)
Kuwait (3.53%)
Denmark (3.49%)
Various (3.37%)
Norway (2.73%)
Ireland (1.99%)
Switzerland (1.74%)
Channel Islands (1.55%)
Italy (1.33%)
France (1.22%)
Spain (1.02%)
Germany (0.87%)
Belgium (0.79%)
United States of America (0.26%)
Iceland (0.23%)
Austria (0.18%)
India (0.02%)
VendorExisting Shareholders of Matariki Forestry Group
Australia (60.0%)
United States of America (40.0%)
Background

Matariki Forestry Group (MFG) is the sole shareholder of Matariki Forests (MF). MF is the registered proprietor of more than four hundred land titles/computer registers which collectively form the Matariki Forestry Estate. There are currently two overseas investor shareholders in MFG being a United States company Rayonier Canterbury LLC (40%) and an Australian company Matariki Forests Australia Pty Limited (60%) (Existing Investors).

Phaunos Timber Fund Limited (Phaunos) proposes to subscribe for shares which will result in Phaunos holding indirectly (through Waimarie Forests Pty Ltd) approximately 35% of total issued Class C ordinary shares and 35% of redeemable shares in MFG.

Phaunos fully supports Matariki's current business operation in New Zealand and does not propose to obtain a controlling interest in Matariki. Phaunos considers itself to be a co-investor and is dedicated to lending its financial and technological resources to Matariki.

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)(ii) – New technology or business skills
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition/productivity
17(2)(e) – Walking Access

Overseas Investment Regulations 2005
28(b) – Key person in a key industry
28(c) – Affect image, trade or international relations
28(f) – Advance significant government policy or strategy

More information

Michael B Harrod
Mayne Wetherell
PO Box 3797
Shortland Street
AUCKLAND

Michael Drumm
Mayne Wetherell
PO Box 3797
Shortland Street
AUCKLAND