Applicant
QIC Private Capital Pty Limited
Case number(s)
200821569
Decision date
Type
Decision
DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005
Decision date3 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:

  • a freehold interest in 0.2022 hectares of land at 11 Main Road, Tairua (Sh 25); and
  • a freehold interest in 0.9233 hectares of land at 40 Alach St, Gate Pa.

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
ApplicantQIC Private Capital Pty Limited
Australia (100.0%)
VendorBabcock & 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
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(iv) – Added market competition/Productivity

Overseas Investment Regulations 2005
28(b) – Key person in a key industry
28(c) – Affect image, trade or international relations
28(f) – Advance significant government policy or strategy

More informationAdrien Hunter
Chapman Tripp (Auckland)
PO Box 2206
AUCKLAND 1140