Overseas investment decision for case 201620039 - ORA New Zealand Limited

An overseas investment in sensitive land and in significant business assets, being the Applicant’s acquisition of rights or interests in 80% of the total number of shares on issue on completion of The Better Health Company Limited which owns or controls either a leasehold or a freehold interest in approximately 1.0137 hectares of land at 88 Montgomerie Road, Mangere and 7 Pavilion Drive, Mangere.

An overseas investment in sensitive land and in significant business assets, being the Applicant’s acquisition of rights or interests in the remaining 20% of the total number of shares on issue of The Better Health Company Limited (in the future) which owns or controls either a leasehold or a freehold interest in approximately 1.0137 hectares of land at 88 Montgomerie Road, Mangere and 7 Pavilion Drive, Mangere.

An overseas investment in sensitive land, being the Applicant’s acquisition of a freehold interest in approximately 0.606 hectares of land at 88 Montgomerie Road, Mangere.

An overseas investment in sensitive land, being the Applicant’s acquisition of a freehold interest in approximately 0.4077 hectares of land at 7 Pavilion Drive, Mangere.

The Applicant is ultimately owned by CDH Fund V L.P. (“Fund V”), a private equity fund.

Fund V’s general partner is CDH V Holdings Company Limited (“Fund V GP”).  Fund V GP is majority-owned by China Diamond Holdings Company Limited a pan-Asian alternative asset fund manager.
The Vendors are the current shareholders in The Better Health Company (“TBHC”).  TBHC operates the GO Healthy business via its two subsidiaries Go Healthy New Zealand Limited and New Zealand Health Manufacturing Limited.

GO Healthy is a leading New Zealand natural health products brand.  The business manufactures and distributes a range of hard and soft capsules, tablets and powders containing natural extracts that provide health benefits for a range of symptoms and targeted effects.  GO Healthy products are sold in New Zealand exclusively through pharmacies and health stores.  

The Vendors consider that the GO Healthy business is at a point where it has achieved a number of its initial strategic objectives and is the market leader in its New Zealand distribution channel.  The Vendors are looking to leverage its domestic brand credibility and market leader position by expansion into export markets.

The Vendors wished to include in the business a strategic partner who could assist with speed of entry into international markets.  A partner was sought that has the resources, capability and willingness to accelerate the growth of GO Healthy.

The Applicant intends to act as a catalyst for expansion of the Go Healthy business and unlock value for all stakeholders by providing the needed assistance and resources to the existing management team in its efforts to capture these new opportunities.

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) – Jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(v) – Additional investment for development purposes