| Decision number | 200720057 |
|---|---|
| Application number | 200720047 |
| Date | 30 October 2007 |
| Offeror/applicant | Laminex Group (NZ) Limited |
| Ultimate applicant beneficial ownership | 63.57 percent - New Zealand, New Zealand Public 36.08 percent - Australia, Australian Public 0.3 percent - Various, Various overseas persons 0.05 percent - United States of America, United States Public |
| Beneficial overseas ownership | |
| - Asset current | N/A |
| - Asset proposed | N/A |
| - Share current | 100 percent |
| - Share proposed | 68.215 percent |
| Offeree(s)/seller(s) | Dongwha Patinna NZ Limited 43.63 percent - South Korea, Ho (Seung Myung) 25.84 percent - South Korea, Korean Exchange Bank 21.84 percent - South Korea, South Korean Public 8.69 percent - South Korea, Ho (Seung Eun) |
| Business activities | Manufacturing - Wood & Paper Products |
| Details of land involved | 124.4028 hectares of freehold situated at 301 Pioneer Highway/State Highway 1, Gore, being CTs SLA4/1445 and SL43/198 (Southland Registry). |
| Regions involved | Southland |
| Total consideration | $26,000,000 |
| Consent sought | To acquire up to 50 percent of the issued share capital of Dongwha Patinna NZ Limited |
| Rationale | The application has been approved as it met the criteria. The Overseas Investment Office is satisfied that the Applicants have business experience and acumen relevant to and are demonstrating financial commitment towards the investment. The Overseas Investment Office is further satisfied that the Applicants are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987. Fletcher Building Limited (Fletcher Building), through its wholly owned subsidiary Laminex Group (NZ) Limited (Laminex NZ) will acquire 20 percent of the shares of Dongwha Patinna NZ Limited (Dongwha Patinna). Dongwha Patinna owns and operates the medium density fibreboard (MDF) manufacturing facility situated in Gore. A call option deed will provide Laminex NZ an option to acquire up to a further 30 percent of the shares of Dongwha Patinna NZ Limited prior to 31 December 2010. The owner of the Applicant, Fletcher Building Products Limited, will source 80 percent of its externally sourced domestic requirements for MDF from Dongwha Patinna. As a result, Dongwha Patinna will become the second largest manufacturer of MDF for the domestic market. Rationale of Proposed Investment: The Applicant considers Dongwha Patinna to have a strong management team and stable workforce. It considers the MDF plant to be well maintained, with good health and safety records, therefore the proposed investment fits well with Fletcher Building's major acquisition criteria. The proposal is likely to result in the following benefits:
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| Contact | Jayne Kirton Bell Gully P O Box 4199 AUCKLAND |