7 July 2010: Media release
The Overseas Investment Office (OIO) has received an application from Natural Dairy (NZ) Holdings Limited to acquire 80% of the shares of UBNZ Assets Holdings Limited. The shares will be acquired from UBNZ Trustee Limited.
Natural Dairy (NZ) Holdings Limited currently owns 20% of the shares of UBNZ Assets Holdings Limited.
Annelies McClure, Manager of the OIO, said the OIO will now assess the application to determine whether or not sufficient information has been supplied and whether the correct fee has been paid.
“Provided the application meets these requirements, the OIO will register the application and begin processing it,” said Ms McClure.
In late May, UBNZ Assets Holdings Limited agreed to acquire 16 Crafar farms from the receivers of the farms.
UBNZ Assets Holdings Limited already owns four farms, which it purchased from Crafar family interests in February 2010, and the OIO has been advised that a retrospective application for consent for this purchase will be filed shortly.
Questions & answers
- What is Natural Dairy (NZ) Holdings Limited applying for?
- Natural Dairy (NZ) Holdings Limited has applied for consent under the Overseas Investment Act 2005 to acquire the remaining 80% of the shares of UBNZ Assets Holdings Limited.
- Can you tell me more about the application?
- The OIO cannot comment on the content of the application, for reasons of commercial confidentiality.
- Now that the OIO has received the Natural Dairy application, what happens next?
- The OIO received the full application today. The OIO will now assess the application to determine whether or not sufficient information has been supplied and the correct fee paid. Provided the application meets these requirements, the OIO will register the application and begin processing it.
The OIO generally aims to make a recommendation to Ministers on how to decide an application for consent within 50 working days of the date of registration. There is no statutory timeframe within which a decision must be made.
- What will happen if the OIO’s initial assessment finds that the required information has not been provided and/or the correct fee not paid?
- The application will be returned to the solicitors acting for Natural Dairy (NZ) Holdings Limited requesting further information and/or payment of the correct fee.
- How long does the OIO’s initial assessment of an application take?
- The OIO aims to complete initial assessments of applications within five working days.
- Does Natural Dairy’s application affect the OIO’s investigation into the four farms purchased by UBNZ Assets Holdings Limited in February 2010?
- No. This investigation will continue until the OIO is satisfied that all the requested information has been supplied, and it is able to determine whether a breach of the Overseas Investment Act 2005 has been committed.
- What is the status of the Court proceedings that have been brought by UBNZ Assets Holdings Limited and Natural Dairy (NZ) Holdings Limited?
- UBNZ Assets Holdings Limited and Natural Dairy (NZ) Holdings Limited have appealed the Auckland High Court’s decision given on 11 June 2010 dismissing an application by UBNZ Assets Holdings Limited and Natural Dairy (NZ) Holdings Limited. The application was for a declaration that consent is not required under the Overseas Investment Act 2005 to purchase the 16 Crafar farms.
No date has yet been set down for the Court of Appeal hearing. The OIO is named as second respondent to the Court of Appeal proceedings.
- What are the proceedings all about?
- The agreements for sale and purchase for the 16 Crafar farms between the Crafar farm receivers and UBNZ Assets Holdings Limited [1] are conditional on consent under the Overseas Investment Act. The receivers have indicated that they may agree to waive the Overseas Investment Act condition in the agreements, if the Court was to give a declaration that Overseas Investment Act consent was not required.
One of the key issues is whether UBNZ Assets Holdings Limited is an “associate of an overseas person” (the overseas person being Natural Dairy (NZ) Holdings Limited).
Associates of overseas persons (as well as overseas persons) are required to get consent under the Overseas Investment Act to purchase sensitive land. UBNZ Assets Holdings Limited and Natural Dairy (NZ) Holdings Limited claim that UBNZ Assets Holdings Limited is no longer an associate of Natural Dairy (NZ) Holdings Limited, as a result of documents entered into that restructure the arrangements between them.
[1] In fact, the named purchaser under the agreements for sale and purchase is UBNZ Funds Management Limited, a company related to UBNZ Assets Management Limited. However, UBNZ Funds Management Limited will nominate UBNZ Assets Management Limited as purchaser.
- How does the appeal of the Auckland High Court’s decision by UBNZ Assets Holdings Limited and Natural Dairy (NZ) Holdings Limited fit in?
- The Court proceedings do not affect the application by Natural Dairy (NZ) Holdings Limited, as consent under the Overseas Investment Act would still be required by Natural Dairy (NZ) Holdings Limited to acquire 80% of the shares of UBNZ Assets Holdings Limited. If consent is granted to both the retrospective application and for Natural Dairy (NZ) Holdings Limited to acquire an additional 80% interest in UBNZ Assets Holdings Limited, this will result in Natural Dairy (NZ) Holdings Limited owning an indirect interest in sensitive land, as UBNZ Assets Holdings Limited already owns four farms.
Further information
For further information see:
Media queries: Brad Young, Senior Communications Advisor, Ph (04) 460 0147 or 027 277 1267, email media@linz.govt.nz.
