Overseas investment decision for case 200910015 - Hancock Natural Resource Group Inc

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in further shares and other securities in Taumata Plantations Limited which owns or controls:

• a freehold interest in 36880.6442 hectares of land in the Northland Region; and
• a leasehold interest in 24271.8409 hectares of land in the Northland Region; and
• a leasehold interest in 21116.3239 hectares of land in the Waikato Region; and
• a freehold interest in 118292.5776 hectares of land in the Waikato Region; and
• a leasehold interest in 18157.7312 hectares of land in the Bay of Plenty Region; and
• a freehold interest in 681.4644 hectares of land in the Bay of Plenty Region; and
• a leasehold interest in 7.3120 hectares of land in the Nelson Region; and
• a freehold interest in 21049.8043 hectares of land in the Nelson Region

An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in further shares and other securities of Taumata Plantations Limited.

In October 2006 (decision number 200620063) consent was granted to the Applicant to acquire certain of the Carter Holt Harvey (CHH) Forest Estates and to various associates of the Applicant acquiring 100% of the securities in Taumata Plantations Limited ("Taumata"), which was the company established by the Applicant to make the acquisition of certain of the CHH Forest Estates.

Taumata Plantations Limited is currently in the process of seeking to raise new capital by the issue of further securities to investors. The proposed investors in the capital raising will be "associates" (as defined in the Overseas Investment Act 2005 ("Act")) of the Applicant.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(iv) – Added market competition/Productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(b) – Indigenous Vegetation/Fauna
17(2)(c) – Trout, salmon, wildlife and game
17(2)(d) – Historic Heritage
17(2)(e) – Walking Access
17(2)(f) – Offer to sell seabed/foreshore to the Crown

Overseas Investment Regulations 2005
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(f) – Advance significant government policy or strategy
28(g) – Enhance the viability of other investments