Decision number200520063
Application number200520043
Date29 September 2005
Offeror/applicantCedenco Foods
Ultimate applicant beneficial ownership100 percent - United States of America, Salyer (Frederick Scott)
Beneficial overseas ownership 
- Asset currentN/A
- Asset proposedN/A
- Share current4.4381 percent
- Share proposed56.25 percent
Offeree(s)/seller(s)Sunrise Coast New Zealand Limited
92.11 percent - New Zealand, New Zealand Public
7.89 percent - Japan, Japanese Public
Business activitiesManufacturing - Food, Beverage & Tobacco
Details of land involved1.3959 hectares of freehold situated at Old Station Road, Ohakune being CTs WN30C/458 and WN49C/58 (Wellington Registry).
Regions involvedTaranaki/Wanganui
Total consideration$2,941,420 to date
Consent Sought - 1995 RegsTo acquire certain business and assets from Sunrise Coast New Zealand Limited, including Sunrise’s 56.25 percent shareholding in Mountain Carrots New Zealand Limited
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the Applicant has business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Overseas Investment Office is further satisfied that the persons who exercise control over the Applicant are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987.

The Applicant (Cedenco)'s major business activities are processing vegetables and fruits into powders, aseptic pastes and purees, block frozen purees, UHT purees and free flow frozen products in New Zealand. Cedenco sells products to mainly multinational companies who use Cedenco products in their own products.

Cedenco proposes to acquire certain business and assets of Sunrise Coast New Zealand Limited (Sunrise), including 100 percent of Sunrise's subsidiary, Sunrise Coast Japan Limited and Sunrise's 56.25 percent shareholding in Mountain Carrots New Zealand Limited (MCNZ). Sunrise markets fresh New Zealand produce including corn from its subsidiary Convenience Foods Limited (CFL) (which processes corn in Gisborne), carrots from MCNZ (which operates an export carrot packing facility), and other produce from third parties. The acquisition of Sunrise by Cedenco will add a new retail primary export dimension to Cedenco's business providing opportunities for growth in Asian markets.

The proposal is likely to result in the following benefits:

  1. the creation of new employment opportunities; and
  2. increased efficiencies to the Sunrise business through the introduction of Cedenco's business skills and through economies of scale.
ContactSimon Horner/Guy Jolly
Mayne Wetherell
P O Box 3797
AUCKLAND