Applicant
AMP Capital Investors Limited
Case number(s)
201320003
Decision date
Type
Decision
DecisionConsent granted
Sections 12(b) and 13(1)(a) of the Overseas Investment Act 2005
Decision date12 November 2013
Investment

An overseas investment in sensitive land, being the acquisition of rights or interests in up to 42% of the ordinary shares and the redeemable preference shares issued by Powerco NZ Holdings Limited (“PNZHL” and the “Shares”) which owns or controls:

  • a freehold interest in approximately 50.1500 hectares of land at 157 Kaimarama Road, Kaimarama;
  • a freehold interest in approximately 1.3984 hectares of land at Rangitikei Line, Palmerston North;
  • a freehold interest in approximately 13.4261 hectares of land at Kopu-Hikuai Road, Kopu;
  • a freehold interest in approximately 0.2022 hectares of land at 11 Main Road, Tairua;
  • a freehold interest in approximately 4.0734 hectares of land at 31 and 35 Junction Street, Highlands Park; and
  • a freehold interest in approximately 0.9233 hectares of land at Alach and Sherson Street, Greerton, Tauranga.

An overseas investment in significant business assets, being the Applicant's acquisition of the Shares, the outstanding amount of the loan notes issued by PNZHL to Prime Infrastructure Networks (New Zealand) No. 2 Limited (“PINNZ-2”) and the outstanding amount of the loan owed by PNZHL to PINNZ-2, the consideration of which exceeds $100m.

Consideration$525,300,000
ApplicantAMP Capital Investors Limited (as manager of a consortium of funds)
Australian Public (86.21%)
New Zealand Public (10.56%)
United Kingdom Public (2.77%)
Various overseas persons (0.46%)
VendorPrime Infrastructure Networks (New Zealand) Limited and Prime Infrastructure Networks (New Zealand) No. 2 Limited
United States Public (76.7945%)
Canada Public (22.4406%)
Various (0.765%)
Background

The Applicant has applied for and been granted consent to acquire a 42% interest in the parent company of Powerco Limited (along with related assets). The Applicant supports Powerco Limited’s capital investment plan which provides for substantial investment into the Powerco network over the next 8 years.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(c) – Affect image
28(e) – Previous investments
28(j) – Oversight and participation by New Zealanders

More informationSilvana Schenone
Minter Ellison Rudd Watts
PO Box 3798
AUCKLAND 1140