Decision
| Consent granted Section 12(b) Overseas Investment Act 2005 |
|---|---|
Decision Maker | The Minister for Land Information and the Associate Minister of Finance |
Decision Date | 13 November 2019 |
Pathway(s) | Significant Business Assets Benefit to New Zealand test - substantial and identifiable benefit to New Zealand |
Investment | An overseas investment in significant business assets and sensitive land. O.G. Oil & Gas (Singapore) Pte. Ltd. seeks consent to increase its shareholding in New Zealand Oil & Gas Limited from 70% up to 100%. New Zealand Oil & Gas Limited owns or controls a 4% interest in a joint venture that owns a freehold interest in 200.1677 hectares of land at the Kupe Production Station. |
Consideration | $36,670,479 |
Applicant | O.G. Oil & Gas (Singapore) Pte. Ltd |
Vendor | Existing shareholders of New Zealand Oil & Gas Limited Singapore Public (69.94%) |
Background | The Applicant forms part of the Ofer Global Group, which carries on business in shipping, offshore floating production, storage, and offloading platforms, commercial real estate, banking and finance, and other associated services. The Applicant owns just under a 70% share in New Zealand Oil and Gas Limited, a company involved in petroleum and gas exploration and production. Consent was granted to allow it to proceed with a takeover bid of the company. It has until 30 October 2020 to complete the transaction, which is subject to shareholder acceptance. If the transaction is successful, the Applicant would increase its existing interest in New Zealand Oil and Gas Limited, which owns or controls a 4% interest in a joint venture owning 200.1677 hectares of land. The Applicant, therefore, has minimal ability to exercise control over the land. The investment will enhance the viability of the Applicant’s existing investment in the company. In addition, the investment will result in the creation of 3 full time jobs, and increase competition in the oil and gas industry. These benefits were considered substantial and identifiable, particularly when considered in proportion to the small ownership and control interest in the land. The Applicant has demonstrated that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The Applicant has also demonstrated financial commitment to the investment. |
More information | Glenn Shewan
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