Applicant
Paper Business Limited
Case number(s)
200820030
Decision date
Type
Decision
Decision number200820030
Application number200810055
Date11 September 2008
Offeror/applicantPaper Business Limited
Ultimate applicant beneficial ownership66.77 percent - New Zealand, New Zealand Public
33.23 percent - Australia, Australian Public
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed33.23 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)BJ Ball Holdings Limited
100 percent - New Zealand, New Zealand Public
Business activitiesManufacturing - Printing, Publishing & Recorded Material
Details of land involved3.061 hectares of leasehold situated at 6-10 Southpark Place, Penrose, Auckland being part CTs 169570, NA109C/583, and NA102D/927 (North Auckland Registry).
Regions involvedSouth Auckland
Total consideration$10,595,596
Consent soughtTo 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.
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:
The Applicant was the sole bidder in a competitive tender to acquire BJ Ball Limited's (Vendor) paper supply business and assets, including the lease over the Land (Business).

Outline of the Investment:
The acquisition of the leasehold interest is part of the Applicant's acquisition of the Business. The lease is for 10 years.

Rationale for the Investment:
The Applicant was incorporated specifically to acquire the Business. It is owned by the AMP Pencarrow Fund, a joint venture between AMP Capital Investors (New Zealand) Limited and Pencarrow Private Equity Limited as to 50% each. The AMP Pencarrow Fund seeks to create and realise value in investments by investing in companies with growth potential. The Business fits this investment strategy.

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

Overseas Investment Act 2005:
s17(2)(a)(iv) - Increased productivity and efficiency.
s17(2)(a)(v) - Additional investment for development purposes.

Overseas Investment Regulations 2005:
r28(b) - Key person.
r28(c) - Adversely affect New Zealand's image overseas.
r28(e) - Previous investments of benefit to New Zealand.

ContactCathy Quinn
Minter Ellison Rudd Watts
P O Box 3798
AUCKLAND 1140