Decision Summary - CIP Canada Investment Inc

Decision number	200720010
Application number	200710098
Date	27 July 2007
Offeror/applicant	CIP Canada Investment Inc
Ultimate applicant beneficial ownership	20 percent - Netherlands, Lipman (Johannes Jacobus) 20 percent - France, Le Proux de La Riviere (Eric) 20 percent - Netherlands, Van Moorsel (Johannes Joseph Maria) 20 percent - Netherlands, De Jong (Eric Maria Johannes Werner) 20 percent - Spain, Horcasitas (Victor Manuel)
Beneficial overseas ownership
- Asset current	100 percent
- Asset proposed	100 percent
- Share current	N/A
- Share proposed	N/A
Offeree(s)/seller(s)	Stratos Global Corporation 62 percent - Canada, Aliant Inc 38 percent - Canada, Canadian Public
Business activities	Communication Services - Telecommunications
Details of land involved	1.1645 hectares of freehold situated at 24 Unity Drive North, Auckland being CT NA110C/427 (North Auckland Registry).
Regions involved	Auckland
Total consideration	$5,100,000
Consent sought	To acquire an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that is listed or in a class listed, as a reserve, a public park, or other sensitive area by the regulator under section 37.
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 and Outline of Proposed Investment CIP Canada Investment Inc (CIP) is proposing to enter into a transaction whereby it will acquire beneficial ownership of 100 percent of the shares in Stratos Global Corporation (Stratos), a company incorporated in Canada. A subsidiary of Stratos owns sensitive land in New Zealand. The New Zealand component of the proposed transaction is a part of a wider international transaction. Stratos provides mobile satellite services, fixed satellite services and terrestrial communications solutions to its customers throughout the world. CIP advises that little will change as a result of the proposed transaction. Stratos' management will continue to execute Stratos' current business strategy. The land contains an earth station providing satellite coverage to the Pacific Rim. Rationale for Proposed Investment CIP is a new investment company whose investment in Stratos will form part of a proposed portfolio of investment in the satellite sector. Refusal to grant consent could likely adversely affect New Zealand's image overseas. The New Zealand component of the proposed transaction is a part of a wider international transaction. CIP and its related entities are major international investors with respected reputations as skilled investors and business operators in the satellite service industry. The proposal is likely to result in the following benefit: increased access to capital for Stratos, for growth and development opportunities.
Contact	Bruce McClintock/Sarah Twigg Chapman Tripp PO Box 2206 AUCKLAND

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