Overseas investment decision for case 201310041 - Elders Limited

An overseas investment in sensitive land, being the acquisition of rights or interests in a further 50% of the issued share capital of Elders Rural Holdings Limited and a further 30% of the issued share capital of Elderstock Limited and Elderstock (SI) Limited, which own or control a freehold interest in:

• 7.3172 hectares of land at Kaikohe Saleyards, Mangakahia Road, Kaikohe; and
• 1.7912 hectares of land at Dargaville Saleyards, River Road, Dargaville; and
• 5.1047 hectares of land at Whangarei Saleyards, Saleyards Road, Whangarei; and
• 9.5250 hectares of land at Tuakau Saleyards, Tuakau Saleyards Road, Tuakau; and
• 3.2621 hectares of land at Hunterville Saleyards, Gordon Terrace, Hunterville; and
• 4.7266 hectares of land at Te Kuiti Saleyards, Cotter Street, Te Kuiti; and
• 11.8083 hectares of land at Wellsford Saleyards, Centennial Park Road, Wellsford; and
• 7.7749 hectares of land at Masterton Saleyards, Norfolk Road, Masterton.

The Applicant intends to acquire, through its wholly owned subsidiary Elders Global Wool Holdings Pty Limited, the 50% of the issued share capital of Elders Rural Holdings Limited and the 30% of the issued share capital of Elderstock Limited and Elderstock (SI) Limited that it does not already own. The purpose of the present Investment is to restructure the ownership of Elders NZ so that the Applicant owns 100% of the Elders Rural Services NZ Business. This will allow the Applicant to sell the Elders Rural Services business without the complications of the joint venture arrangement that currently applies to the Elders Rural Services NZ Business.

The overseas investment transaction has satisfied the criteria in section 16 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)(i) – Retention of jobs

Overseas Investment Regulations 2005
28(c) – Affect image
28(e) – Previous investments
28(g) – Enhance the viability of other investments