Overseas investment decision for case 201410056 - Foley Family Wines Limited | Toitū Te Whenua

Applicant: Foley Family Wines Limited
Case number(s): 201410056
Decision date: 13 Jun 2014
Type: Decision

Decision	Consent granted Section 12(b) Overseas Investment Act 2005
Decision date	13 June 2014
Investment	Overseas investments in sensitive land, being the Applicant's acquisition of rights or interests in: 100% of the shares of Martinborough Vineyard Estates Limited which together with its wholly-owned subsidiary, Martinborough Vineyard Limited (MVL), owns or controls a freehold interest in approximately 66ha and a leasehold interest in approximately 8ha of land located near Martinborough, South Wairarapa (MVEL Shares); and 50% of the shares of McLeod Vineyard Limited which owns or controls a freehold interest in approximately 6ha of land located near Martinborough, South Wairarapa (McLeod Shares).
Consideration for MVEL shares	The issue of ordinary shares in FFWL to those shareholders of MVEL accepting the takeover offer; and The issue of ordinary shares in FFWL to the second debenture holders of MVEL which will be in return for payment of $708,450 (which will be set off against the full amount currently owing to all of the second debenture holders of MVEL).
Consideration for McLeod shares	$424,000
Applicant	Foley Family Wines Limited United States of America (80%) New Zealand and potentially other nationalities (20%)
Vendor of MVEL shares	Existing shareholders of Martinborough Vineyard Estates Limited New Zealand (95%) Various overseas persons (5%)
Vendor of Mcleod shares	Existing shareholders of McLeod Vineyard Limited other than the Applicant New Zealand (100%)
Background	The Applicant’s acquisition of shares in MVEL (and the merging of MVEL’s and MVL’s business with that of the Applicant) will provide substantial and identifiable benefits to New Zealand through the establishment of and access to a strong distribution network in the United States of America and elsewhere and access to further capital to secure the current operations of MVEL and MVL and to facilitate their future expansion and growth. The Applicant’s acquisition of shares in McLeod (and the full ownership of McLeod by the Applicant) will provide access to further capital to secure and improve its vineyard operations. 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) – Creation and retention of Jobs 17(2)(a)(iii) – Increased export receipts 17(2)(a)(iv) – Greater productivity and efficiency 17(2)(a)(v) – Additional investment for development purposes Overseas Investment Regulations 2005 28(a) – Consequential benefits 28(e) – Previous investments 28(g) – Enhance the viability of other investments 28(i) – Economic interests 28(j) – Oversight and participation by New Zealanders
More information	Silvana Schenone Minter Ellison Rudd Watts PO Box 3798 AUCKLAND 1140

Back to top