| Decision | Consent Granted Section 12(b) Overseas Investment Act 2005 Section 13(1)(a) Overseas Investment Act 2005 |
|---|---|
| Decision date | 20 September 2010 |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 51.0% of the shares of Synlait Milk Limited which owns or controls a leasehold interest in 49.2245 hectares of land at 1028 Heslerton Rd, Bankside-Dunsandel. An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 51.0% of the shares of Synlait Milk Limited, the value of the assets of Synlait Milk Limited and its 25% or more subsidiaries being greater than $100m. |
| Consideration | CONFIDENTIAL |
| Applicant | Bright Dairy and Food Co., Ltd Chinese Government, China, People's Republic of (63.8608%) China Public (32.2882%) China Pacific Life Insurance Co., Ltd, China, People's Republic of (1.686%) Bank of Communications Sea Fortis Securities Investment Fund, China, People's Republic of (1.44%) Bank of China Sea Fortis Securities Revenue Growth Investment Fund, China, People's Republic of (0.725%) |
| Background | The Applicant is one of the largest dairy product manufacturing and distribution enterprises in The People's Republic of China. The Applicant distributes its products in the Chinese domestic market, with Shanghai being its major market. The Applicant will subscribe for new ordinary shares in Synlait Milk Limited which will result in it holding 51% of the issued share capital of Synlait Milk Limited. Synlait Milk Limited owns and operates a high specification milk processing facility, producing milk powder products and high-value functional milk products for export. The funds raised through the Investment will be used to strengthen Synlait Milk Limited's financial position and fund a new milk processing plant. 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 Overseas Investment Regulations 2005 |
| More information | Martin Thomson DLA Phillips Fox (Auckland) PO Box 160 AUCKLAND |