Decision Summary - Fiji Water Company LLC

Decision number 200820014
Application number 200810063
Date 28 July 2008
Offeror/applicant Fiji Water Company LLC
Ultimate applicant beneficial ownership 100 percent - United States of America, Resnick (Stewart and Lynda)
Beneficial overseas ownership
- Asset current 0 percent
- Asset proposed 100 percent
- Share current N/A
- Share proposed N/A
Offeree(s)/seller(s) Williams (Mark Anthony) & (Kelsey Emma) and de la Roche (Justin Charles)
34 percent - New Zealand, Williams (Kelsey Emma)
33 percent - New Zealand, Williams (Mark Anthony)
33 percent - New Zealand, de la Roche (Justin Charles)
Business activities Manufacturing - Food, Beverage & Tobacco
Details of land involved 59.1775 hectares of freehold situated at 364 Barnes Road, Taitapu, Christchurch and 264 Ridge Road, Greenpark-Motukaraka, Christchurch being CTs CB31F/287 and 89698 (Canterbury Registry).
Regions involved Canterbury
Total consideration $3,100,000
Consent sought To acquire an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Background to the Investment:
Since 1996 SpringFresh Limited (SpringFresh) has operated an artesian water bottling business on the Land providing bottled water to the hospitality industry, tourism industry, and the general public. SpringFresh's water is sold almost exclusively within New Zealand. Very little of its product is exported.

Outline of the Investment:
The Applicant has entered sale and purchase agreements for the Land with the Fern Grove Trust (Vendor). Both are conditional on obtaining the Overseas Investment Office's consent and each agreement is conditional on the other settling.

Rationale for the Investment:
The Applicant seeks to establish an export business using water bottled from the well on the Land.

The proposed investment will or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following factors:

  1. Overseas Investment Act 2005:
    1. s17(2)(a)(i) - Creation of new job opportunities.
    2. s17(2)(a)(iii) - Increased export receipts.
    3. s17(2)(a)(iv) - Increased productivity.
    4. s17(2)(a)(v) - Additional investment for development purposes.
  2. Overseas Investment Regulations 2005
    1. r28(b) - Key person in a key industry.
    2. r28(c) - Adversely affect New Zealand's image overseas.
Contact James Clark
Russell McVeagh
PO Box 10-214
WELLINGTON

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