9 July 2009
Regulation 33 of the Overseas Investment Regulations 2005 has been amended, with effect from today
Regulation 33 provides that certain specified transactions are exempt from the requirements in the Overseas Investment Act 2005 to obtain consent for overseas investment in sensitive land, significant business assets, or fishing quota.
The amendments change one of the existing exemptions and create three new exemptions (subject to specified conditions). The amendments are part of the review of the overseas investment screening regime.
Regulation 33(1)(a)(i) is amended in order to increase its application. It will now apply to intra-group transactions where the companies are at least 95 percent owned by the overseas person.
The three new exemptions are:
- 33(1)(j), which permits an overseas person to acquire two or more security arrangement if they are acquired together as a portfolio or bundle and the total value of consideration provided for that portfolio or bundle does not exceed $100 million
- 33(1)(o), which permits the temporary acquisition of securities for underwriting or sub-underwriting purposes
- 33(1)(p), which permits an overseas person who has previously been granted consent to acquire securities to acquire more of those securities provided the subsequent acquisitions increase the overall holding by less than five percent and occur within five years of the date on which the overseas person was granted consent for the initial acquisition of the securities.
View the amendments at www.legislation.govt.nz.