| Decision | Consent granted Section 12(b) Overseas Investment Act 2005 Section 13(1)(a) Overseas Investment Act 2005 |
|---|---|
| Decision date | 3 February 2009 |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 50.0% of the Shares of Powerco NZ Holdings Limited which owns or controls:
An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 50.0% of the Shares of Powerco NZ Holdings Limited, the consideration of which exceeds $100m. |
| Consideration | $415,201,866 |
| Applicant | QIC Private Capital Pty Limited Australia (100.0%) |
| Vendor | Babcock & Brown Infrastructure Networks (New Zealand) Limited Australia (98.21%) New Zealand (1.41%) Various (0.38%) |
| Background | BBI Networks (New Zealand) Limited ("BBI") owns Powerco Limited, Powerco Transmission Limited and Independent Transmission Services Limited (together being "the Powerco Group"). BBI have decided to sell a 50% interest in the Powerco Group. BBI require further capitalisation to enable the Powerco Group to fulfil its business plan. The investment benefits the Powerco Group in terms of financing capacity i.e. the improvement in the ability to obtain debt finance and additional equity. The Applicant is ultimately managing the investment on behalf of the Queensland superannuation schemes and the Queensland State Government. As such, the Applicant has long-term investment horizons and seeks investments to which it can add value as a less than 100% owner. As an asset class, energy distribution is perceived as a good return and the Applicant considers the investment is consistent with its investment aims. The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors: Overseas Investment Act 2005 Overseas Investment Regulations 2005 |
| More information | Adrien Hunter Chapman Tripp (Auckland) PO Box 2206 AUCKLAND 1140 |