Decision number200520098
Application number200520108/200810003
Date9 December 2005/28 February 2008
Offeror/applicantFollies Limited
Ultimate applicant beneficial ownership50.52 percent - New Zealand, Infratil Limited
32.96 percent - New Zealand, Tauranga Energy Consumers Trust
12.49 percent - New Zealand, New Zealand Public
4.03 percent – Various, Various overseas persons
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed4.03 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Smart (Christopher John) of New Zealand
Business activitiesElectricity, Gas & Water Supply - Electricity & Gas Supply
Details of land involved92.99 hectares of freehold situated at State Highway 63, Wairau Valley, Marlborough being CTs 56454 and 56455 (Marlborough Registry).
Regions involvedNelson/Marlborough
Total considerationCONFIDENTIAL
Consent SoughtTo acquire an estate or interest in land which, either alone or together with any associated land of that type, 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.

TrustPower has identified an opportunity to develop a hydro-electric scheme in the Wairau Valley in the Marlborough region. The proposed scheme is an extension of the Branch hydro electric scheme owned by TrustPower. Under the project, part of the Wairau river flow would be diverted into the existing Branch scheme and the water conveyed through interconnecting canals and penstocks to five new generating stations. TrustPower proposes to acquire the subject property to enable it to proceed with construction of the project once resource consents are granted under the Resource Management Act. In particular, it is intended that Power Station No. 2 and the steel pipe conveying the water to the power station will be built on the land.

CONFIDENTIAL

TrustPower's core business is to generate and sell electricity.

CONFIDENTIAL

The proposal is likely to result in the following benefits:

  1. the creation of new employment opportunities;
  2. the introduction of development capital;
  3. greater efficiencies to the Applicant's business operations through an increased share of generation assets; and
  4. added market competition in the wholesale/retail electricity markets.
ContactJacintha Tan
Minter Ellison Rudd Watts
P O Box 3798
AUCKLAND