Decision Summary - Souter Holdings (No 2) Limited

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:
Souter Holdings (No 2) Limited (Applicant) was formed for the purpose of acquiring 100% of the shares of Howick and Eastern Buses Limited (Target).

Outline of the Investment:
The Applicant entered into a sale and purchase agreement (Agreement) with the trustees of the Dalbeth Family Trust No. 2 and the WT Dalbeth Family Trust (Vendors) to acquire 100% of the shares in the Target and therefore an interest in the Land. Although Mr WR Rae, a New Zealand citizen, is the sole director and shareholder of the Applicant, Mr B Souter of Scotland will fund the acquisition and exercise control over the investment.

Rationale for the Investment:
The Applicant intends to continue the Target's operations in their current form with a long term view to expand within the Auckland transport market. The inclusion of the Land in the Agreement is strategically significant as the Land is located on a major arterial route which is necessary to servicing the contracts in place between the Target and the Auckland Regional Transport Authority.

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 job opportunities; and
   2. s17(2)(a)(v) - Additional investment for development purposes.
2. Overseas Investment Regulations 2005:
   1. r28(b) - Key person in a key industry; and
   2. r28(e) - Previous investments of benefit to New Zealand.