Decision number200610028
Application number200610004
Date14 March 2006
Offeror/applicantAllco Funds Management Limited
Ultimate applicant beneficial ownership100 percent - Australia, Allco Principals Trust
Beneficial overseas ownership 
- Asset currentN/A
- Asset proposedN/A
- Share current0 percent
- Share proposed100 percent
Offeree(s)/seller(s)New Zealand Public of New Zealand
Business activitiesFinance and Insurance - Financial Institutions
Details of land involvedNone.
Regions involvedAuckland
Total considerationCONFIDENTIAL
Consent soughtTo acquire up to 100 percent of the securities of Strategic Investment Group 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.

Allco Funds Management Limited (Allco) proposes to acquire 50 percent of Strategic Investment Group Limited (SIGL). SIGL's only asset is a holding of approximately 88 percent of the shares in Strategic Finance Limited (SFL). It is intended that, following a restructuring, SIGL will hold 100 percent of SFL prior to Allco acquiring the shares in SIGL. SIGL is a financial services group with offices in Wellington, Auckland and Sydney. Its principal activities include finance and corporate advisory services with a principal focus of providing debt finance for property development and property investment purposes.

Allco is a wholly owned subsidiary of Allco Principals Trust, the beneficiaries of which own Allco Finance Group Limited (Allco Finance). Allco Finance is a privately owned Australian investment bank and financial services group which provides structured finance solutions in Australia and internationally. Allco Finance's activities are grouped into five main operating divisions: Asset Finance, Funds Management, Capital Markets Finance, Allco Equity Partners, and Allco Principal Finance. Since its establishment in 1979, Allco Finance has arranged finance for assets worth more than US$50 billion. Allco Finance currently manages equity investment funds with a total value in excess of A$2.5 billion. Allco Finance views the transaction as an opportunity to expand its New Zealand business (its Alleasing business has a New Zealand office). Given the similarities of the Allco Finance and the Strategic businesses, a number of synergistic opportunities are possible to expand in both New Zealand and Australia.

ContactHaydn Wong/Angela Doone
Bell Gully
P O Box 4199
AUCKLAND