Applicant
Pacific Equity Partners Fund III, Pacific Equity Partners Fund IV, International Capital Group Plc and Hoyts Group management
Case number(s)
200720066
Decision date
Type
Decision
Decision number200720066
Application number200720072
Date27 November 2007
Offeror/applicantPacific Equity Partners Pty Limited on behalf of Pacific Equity Partners Fund III, Pacific Equity Partners Fund IV, International Capital Group Plc and Hoyts Group management
Ultimate applicant beneficial ownership49.7672 percent - United States of America, United States Public
23.4316 percent - Australia, Australian Public
11.5128 percent - Various, Various overseas persons
6.7052 percent - United Kingdom, United Kingdom Public
2.9336 percent - Netherlands, Dutch Public
1.864 percent - Singapore, Singapore Public
1.3776 percent - Sweden, Swedish Public
1.072 percent - Iceland, Icelandic Public
0.8 percent - Denmark, Danish Public
0.536 percent - Japan, Japanese Public
Beneficial overseas ownership 
- Asset currentN/A
- Asset proposedN/A
- Share current100 percent
- Share proposed100 percent
Offeree(s)/seller(s)Existing shareholders in Hoyts Corporation Holdings (NZ) Limited
50 percent - Australia, West Australian Newspapers Holdings Limited
50 percent - Australia, Publishing and Broadcasting Limited
Business activitiesCultural & Recreational Services - Amusement/Entertainment
Details of land involved

2.2757 hectares of leasehold comprising:

  1. 1.174 hectares situated at Link Drive, Wairau Park, Glenfield, Auckland being CTs NA113C/849, NA133C/850, NA133C/851, NA133C/853, NA133C/854, NA133C/855, and NA133C/856 (North Auckland Registry); and
  2. 1.1017 hectares situated at 392 Moorhouse Avenue, Christchurch being CTs CB38A/229 and CB38/230 (Canterbury Registry).
Regions involvedAuckland
Canterbury
Total considerationCONFIDENTIAL
Consent soughtTo acquire up to 100 percent of the shares of DCA Agedcare Holdings Pty Limited.
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.

Outline of the Investment:
Pacific Equity Partners Pty Limited (PEP) on behalf of funds managed and controlled by PEP (the PEP Funds) proposes to incorporate a new Australian entity to acquire all of the issued units in The Hoyts Trading Trust (Hoyts Australia) and a new New Zealand entity to acquire the entire issued share capital of Hoyts Corporation Holdings (NZ) Limited (Hoyts NZ).

Hoyts NZ has five wholly-owned subsidiaries Hoyts Cinemas (NZ) Limited, Hoyts Distribution (NZ) Limited, Val Morgan Cinema Advertising (NZ) Limited, Media Entertainment Group (New Zealand) Limited and Administration and Developments Limited. Hoyts NZ's businesses include cinema exhibition, cinema advertising and film distribution.

Rationale for the Investment:
The Applicant proposes to acquire Hoyts because it provides an opportunity to acquire a well established business where the careful use of leverage in the capital structure, supported by a clear strategy for improving the business combine to provide an attractive investment.

Refusal of this application would likely adversely affect New Zealand's image overseas as the shares proposed to be acquired represent a small part of a wider international transaction.

ContactDavid Quigg
Quigg Partners
P O Box 3035
WELLINGTON 6140