Decision number200520080
Application number200520081
Date10 November 2005
Offeror/applicantAger Sectus Company Limited
Ultimate applicant beneficial ownership64.95 percent - United Kingdom, UK Public
14.99 percent - Netherlands, Dutch Public
14.58 percent - New Zealand, New Zealand Public
2.47 percent - Australia, Australian Public
1.36 percent - South Africa, South African Public
0.86 percent - Switzerland, Swiss Public
0.79 percent - Belgium, Belgium Public
Beneficial overseas ownership 
- Asset currentN/A
- Asset proposedN/A
- Share current22.24 percent
- Share proposed39.046 percent
Offeree(s)/seller(s)Existing Shareholders in Ager Sectus Company Limited
77.76 percent - New Zealand, New Zealand Public
15.79 percent - United Kingdom, UK Public
4.89 percent - Thailand, Thai Public
0.94 percent - Switzerland, Swiss Public
0.62 percent - Belgium, Belgium Public
Business activitiesAgriculture - Horticulture & Fruit - Viticulture
Details of land involved

153.376 hectares comprising:

  1. 62.0791 hectares situated at Hammond Road, Wairau Valley Road, Marlborough being CTs MB5C/370, MB5C/369, 65770, 65771, and 130290 (Marlborough Registry); and
  2. 9.392 hectares situated at 39 Hammond Road, Renwick, Marlborough being MB4A/1438, and MB4A/1439 (Marlborough Registry).
  3. 81.9049 hectares situated at State Highway 50, Omahu Road and Mere Road, and Kereru Road, Hawkes Bay being CTs 46287, 186185 and 36548 (Hawkes Bay Registry).
Regions involvedGisborne/Hawkes Bay
Nelson/Marlborough
Total consideration$6,895,918
Consent SoughtTo acquire up to 39.03 percent of the securities of Ager Sectus Company 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.

Ager Sectus Company Limited (Ager Sectus) proposes to acquire the business and assets owned by The Crossings (Marlborough) Limited (The Crossings) (refer application number 200520082). Ager Sectus intends to finance part of this acquisition by the issue of further shares to existing shareholders and new shareholders. Ager Sectus is currently 22.24 percent owned by persons who are overseas persons. As a result of the proposed issue of shares, Ager Sectus will become an overseas person with approximately 39.03 percent of the shares held by persons who are overseas persons.

Ager Sectus was incorporated in 2000 and its core business is the production and export of high quality wine. Ager Sectus owns land in the Hawkes Bay and Marlborough. Ager Sectus's brands are Crossroads, Southbank Estate and Braided River. Ager Sectus advises that it is building a significant position in the New Zealand wine industry through internal growth, greenfield projects, acquisitions and brand development. The acquisition of The Crossings will facilitate the growth of Ager Sectus.

The proposal is likely to result in Ager Sectus acquiring The Crossings. That acquisition is likely to result in the following benefits:

  1. the creation of new employment opportunities in New Zealand;
  2. increased export receipts for New Zealand exporters;
  3. greater efficiencies to the businesses of Ager Sectus and The Crossings;
  4. the introduction into New Zealand of additional investment for development purposes; and
  5. the increased processing in New Zealand of New Zealand's primary products.
ContactPeter Ratner
Crengle Shreves & Ratner
PO Box 10 236
WELLINGTON