Overseas investment decision for case 200820002 - Rubicon Limited

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 to the Investment:
Tenon was formerly called Fletcher Challenge Forests Limited and is a New Zealand company listed on the New Zealand Stock Exchange. It is in the business of processing, marketing and distributing wood products and has assets valued at more than $100 million. In 2004, the Applicant sought and gained consent to acquire shares in Tenon, pursuant to which it has since acquired its current holding of 57.65% in the company.

Outline of the Investment:
The Applicant now wishes to be able to acquire the other 42.35% of Tenon that it doesn't already own, thereby increasing its total holding in Tenon to up to 100% of the company.

Rationale for the Investment:
Securing consent will assist the Applicant to:

1. add value to the Applicant's businesses in wood products; and
2. better influence Tenon's future business direction and conduct.