| Decision number | 200710069 |
|---|---|
| Application number | 200620161 |
| Date | 11 June 2007 |
| Offeror/applicant | Cedenco Foods |
| Ultimate applicant beneficial ownership | 100 percent - United States of America, Salyer (Frederick Scott) |
| Beneficial overseas ownership | |
| - Asset current | 0 percent |
| - Asset proposed | 100 percent |
| - Share current | 56.25 percent |
| - Share proposed | 100 percent |
| Offeree(s)/seller(s) | Vendor Shareholders and Land Purchaser of Mountain Carrots New Zealand Limited 50 percent - New Zealand, Sue (Ken, Cyril, Nancy and Jin) 25 percent - New Zealand, Chan (Sonny), Brown (Peter Dennis) and Sewell & Wilson Trustee Limited as trustees of the Sonny & Brenda Chan Family Trust 25 percent - New Zealand, Chan (Henley, Betty and Malcolm Craig) and Sewell & Wilson Trustee Limited as trustees of the Henley and Betty Chan Family Trust |
| Business activities | Manufacturing - Food, Beverage & Tobacco |
| Details of land involved | 1.3959 hectares of leasehold situated at Old Station Road, Ohakune being CTs WN49C/58 and WN30C/458 (Wellington Registry). |
| Regions involved | King Country |
| Total consideration | $833,886 |
| Consent sought | To acquire an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the regulator under section 37. To acquire up to 100 percent of the securities of Mountain Carrots New Zealand Limited. |
| Rationale | 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. On 1 October 2005, SK Foods received consent from the Overseas Investment Office to acquire 56.25 percent of the shares in Mountain Carrots New Zealand Limited (MCNZ), a company that operates an export carrot packing facility at Ohakune. Carrots are purchased from growers by Sunrise Coast New Zealand Limited (Sunrise Coast) (a wholly owned subsidiary of Cedenco) and packed by MCNZ. The packed carrots are then exported by Sunrise Coast. SK Foods and its wholly- owned subsidiary Cedenco Foods (Cedenco) propose to acquire the remaining 43.75 percent of the shares in MCNZ from the minority shareholders of MCNZ. It is proposed that contemporaneously with the share acquisition that the land will be sold by MCNZ to the minority shareholders of MCNZ and then leased back to MCNZ under a lease. Cedenco proposes to acquire the shareholding to grow its New Zealand fruit and vegetable processing business. The proposal is likely to result in the following benefits:
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| Contact | Tim Buckley Mayne Wetherell P O Box 3797 AUCKLAND |