| Decision | Consent granted Section 12(b) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | Overseas Investment Office |
| Decision Date | 16 March 2020 |
| Pathway(s) | Sensitive land – special forestry test |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of 100% of the shares in RMS FGI New Zealand Limited. |
| Consideration | USD$40,000,000, subject to adjustments |
| Applicant | CFPC (Singapore) Pte. Limited Government of the People's Republic of China (100%) |
| Vendor | RMS Forest Growth International LP Luxembourg Public (52%) Germany Public (43%) United States Public (5%) |
| Background | The Applicant has applied for consent under the special test relating to forestry activities set out in section 16A(4) of the Act. The Applicant is part of the China National Forest Products Company Limited Group (CNFPC Group), a long-term participant in the forestry sector in New Zealand. RMS FGI New Zealand Limited (RMS FGI) owns two forestry rights registered over land located in the lower North Island. The forestry rights are registered on records of title with a total area of approximately 25,600 hectares. Approximately 5,235 hectares of the land is planted as commercial forests, with limited ancillary rights over the remaining land necessary to establish, maintain or harvest the commercial forests. The Applicant is acquiring its interest in RMS FGI in order to enhance and supplement the CNFPC Group's New Zealand forestry operations. RMS FGI will continue to own the forestry rights. The relevant land will continue to be managed as sustainable production forests. This will involve harvesting and re-planting in accordance with best New Zealand forest industry practices. The forests do not include any residential land and will not be used for any residential purposes. There are no qualifying existing arrangements or any log supply contracts that the Applicant can control through its investment. The forests do not include any special land or farm land. |
| More information | Susie Kilty Buddle Findlay PO Box 2694 WELLINGTON 6140 |