Overseas investment decision for case 200520081 - Ager Sectus Company Limited

To acquire:

1. an estate or interest in land which , together with any associated land, exceeds 0.4 hectares and adjoins land held for conservation purposes under the Conservation Act 1987 (if that conservation land exceeds 0.4 hectares in area); and
2. an estate or interest in land which, together with any associated land, is or includes non-urban land and exceeds 5 hectares in area.

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Ager Sectus Company Limited (Ager Sectus) proposes to acquire the business and assets owned by The Crossings (Marlborough) Limited (The Crossings). Ager Sectus intends to finance part of this acquisition by the issue of further shares to existing shareholders and new shareholders. Ager Sectus is currently 22.24 percent owned by persons who are overseas persons. As a result of the proposed issue of shares, Ager Sectus will become an overseas person with approximately 39.03 percent of the shares held by persons who are overseas persons) (refer application number 200520081).

Ager Sectus was incorporated in 2000 and its core business is the production and export of high quality wine. Ager Sectus owns land in the Hawkes Bay and Marlborough. Ager Sectus's brands are Crossroads, Southbank Estate and Braided River. Ager Sectus advises that it is building a significant position in the New Zealand wine industry through internal growth, greenfield projects, acquisitions and brand development. The acquisition of The Crossings will facilitate the growth of Ager Sectus.

The proposal is likely to result in Ager Sectus acquiring The Crossings. That acquisition is likely to result in the following benefits:

1. the creation of new employment opportunities in New Zealand;
2. increased export receipts for New Zealand exporters;
3. greater efficiencies to the businesses of Ager Sectus and The Crossings;
4. the introduction into New Zealand of additional investment for development purposes; and
5. the increased processing in New Zealand of New Zealand's primary products.