Decision number200520081
Application number200520082
Date10 November 2005
Offeror/applicantAger Sectus Company Limited
Ultimate applicant beneficial ownership60.97 percent - New Zealand, New Zealand Public
28.85 percent - United Kingdom, UK Public
3.99 percent - Netherlands, Dutch Public
3.58 percent - Thailand, Thai Public
0.92 percent - Switzerland, Swiss Public
0.67 percent - Belgium, Belgium Public
0.66 percent - Australia, Australian Public
0.36 percent - South Africa, South African Public
Beneficial overseas ownership 
- Asset current9.11 percent
- Asset proposed39.03 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)The Crossings (Marlborough) Limited
90.89 percent - New Zealand, New Zealand Public
2.82 percent - United States of America, US Public
2.42 percent - Australia, Australian Public
2.09 percent - United Kingdom, UK Public
0.83 percent - Netherlands, Dutch Public
0.56 percent - Hong Kong, Hong Kong Public
0.23 percent - United Arab Emirates, United Arab Emirates Public
0.14 percent - Japan, Japanese Public
0.02 percent - Ireland, Irish Public
Business activitiesAgriculture - Horticulture & Fruit - Viticulture
Details of land involved225.1771 hectares of freehold situated at Awatere Valley Road, Marlborough being CTs MB5C/726, MB2A/1126, MB6C/164, MB6A/54, and MB5A/789 (Marlborough Registry).
Regions involvedNelson/Marlborough
Total consideration$21,436,619
Consent Sought

To acquire:

  1. an estate or interest in land which , together with any associated land, exceeds 0.4 hectares and adjoins land held for conservation purposes under the Conservation Act 1987 (if that conservation land exceeds 0.4 hectares in area); and
  2. an estate or interest in land which, together with any associated land, is or includes non-urban land and exceeds 5 hectares in area.
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). 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) (refer application number 200520081).

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