Applicant
Contact Energy Limited
Case number(s)
200820011
Decision date
Type
Decision
Decision number200820011
Application number200810025
Date21 July 2008
Offeror/applicantContact Energy Limited
Ultimate applicant beneficial ownership42.9243 percent - Australia, Australian Public
41.37 percent - New Zealand, New Zealand Public
6.404 percent - United States of America, United States Public
5.4244 percent - Various, Various overseas persons
3.8772 percent - United Kingdom, United Kingdom Public
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed58.6299 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Landcorp Farming Limited of New Zealand
Business activitiesElectricity, Gas & Water Supply - Electricity & Gas Supply
Details of land involved35.5 hectares of freehold situated at Known as Ohaaki Inundation Land near Taupo being Part CT SA49B/684 (South Auckland Registry).
Regions involvedWaikato
Total consideration$308,250
Consent soughtTo 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 to the Investment:
Ohaaki geothermal power station (Ohaaki) was commissioned in 1989. The Applicant operates Ohaaki pursuant to variety of land rights and extraction rights producing up to 105 mega watts of electricity. The geothermal power generation at Ohaaki produces water as part of the convection mechanism that cools geothermal steam as it is released from the turbine. This water is released onto land adjoining Ohaaki including the Land.

Outline of the Investment:
The Applicant has entered a sale and purchase agreement with LandCorp Farming Limited (Vendor) to acquire the Land conditional on obtaining the Overseas Investment Office's consent. The precise area of the Land will not be known until the planned subdivision occurs. The Applicant intends to lease back to the Vendor parts of the Land at market rental for farming use until such time as the level of inundation on the Land makes farming no longer viable.

Rationale for the Investment:
The Applicant currently holds several easement rights in respect of the Land such as the right to convey electricity, however these rights do not extend to the right to store water on, or inundate, the Land. The Applicant and the Vendor have agreed to sell the Land to the Applicant subject to the lease-back arrangement noted above, and to the Applicant compensating the Vendor for pockets of land already inundated.

The proposed overseas investment will or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following benefits:

Overseas Investment Act 2005:
s17(2)(f) - Adequate public walking access.

Overseas Investment Regulations 2005:
r28(a) - Consequential benefit.
r28(b) - Key person in key industry.
r28(c) - Adversely affect New Zealand's image overseas.
r28(e) - Previous investments.
r28(f) - Significant Government policy or strategy.
r28(g) - Enhance viability of other investments.

ContactSusie Kilty/Jessica White
Buddle Findlay
P O Box 2694
WELLINGTON 6140