Overseas investment decision for case 200720036 - Archer Capital Pty Limited Fund 4 | Toitū Te Whenua

Applicant: Archer Capital Pty Limited Fund 4
Case number(s): 200720036
Decision date: 23 Sep 2007
Type: Decision

Decision number	200720036
Application number	200710041/200720077
Date	24 September 2007
Offeror/applicant	Archer Capital Pty Limited Fund 4
Ultimate applicant beneficial ownership	62.6 percent - Australia, Australian Public 20.4 percent - Hong Kong, Hong Kong Public 10.2 percent - Various, Various overseas persons 6.8 percent - United States of America, United States Public
Beneficial overseas ownership
- Asset current	100 percent
- Asset proposed	100 percent
- Share current	N/A
- Share proposed	N/A
Offeree(s)/seller(s)	Foster's Group Limited 60.93 percent - Australia, Australian Public 17.07 percent - United States of America, United States Public 13.28 percent - United Kingdom, United Kingdom Public 8.72 percent - Various, Various overseas persons
Business activities	Agriculture - Horticulture & Fruit - Viticulture
Details of land involved	16.996 hectares of freehold situated at 83 Hawkesbury Road, Marlborough being CTs MB3E/466 and MB3E467 (Marlborough Registry).
Regions involved	Nelson/Marlborough
Total consideration	$3,881,250
Consent sought	To acquire an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area.
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. Background: Foster's Group Limited (Foster's) is offering for sale its Australasian wine clubs and services business by way of a competitive bid process. The New Zealand components of the business comprise Card Member Wines Limited (Cardmember), which is the direct marketing wine club business, and Carter & Associates (2000) Limited (Carter & Associates) which is a distributor of glass bottles, corks and other dry goods to the wine industry. The Applicant will acquire all of the equity securities in Cardmember and Carter & Associates and an interest in the sensitive land from Matua Valley Wines Limited. Outline of Proposed Investment: Archer Capital Pty Limited (Archer), on behalf of a special purpose vehicle, Bidco, is the successful bidder in the bidding process for Foster's Group Limited Australasian wine clubs and services businesses. The acquisition of the securities in Cardmember and Carters does not require consent under the Act. Rationale for Proposed Investment: Archer is attracted to the transaction by the market leading position of the Cardmember business. It has a stable cash flow generation, an experienced and qualified management team and growth opportunities identified in due diligence.
Contact	Anna Buchly Bell Gully PO Box 4199 AUCKLAND

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