Decision number200810027
Application number200720103
Date31 March 2008
Offeror/applicantErnslaw One Limited
Ultimate applicant beneficial ownership100 percent - Malaysia, Tiong Family
Beneficial overseas ownership 
- Asset current100 percent
- Asset proposed100 percent
- Share current100 percent
- Share proposed100 percent
Offeree(s)/seller(s)Waimarino Forests Limited, PMI Nominees Limited and Perfect Match Nominees Limited
100 percent - Indonesia, Indonesian Public
Business activitiesForestry
Details of land involved

3,895.8862 hectares of freehold situated at Waimarino Forest and Karioi pulp mill being various CTs in the Wellington Registry.

10,058.7159 hectares of leasehold situated at Waimarino Forest and Tangiwai sawmill being various CTs in the Wellington and Taranaki Registries.

Regions involvedTaranaki/Wanganui
Total consideration$117,293,314
Consent sought

To acquire:

  1. an 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; and
  2. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the regulator under section 37; and
  3. up to 100 percent of the shares of Winstone Pulp International Limited.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the Applicant has significant 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.

Background and Outline of the Investment:
Ernslaw One Limited (Ernslaw One) proposes to enter into Agreements for Sale and Purchase to acquire 100 percent of the shares in Winstone Pulp International Limited (Winstone Pulp) and certain forestry assets including freehold land directly from a subsidiary of Winstone Pulp. The assets of Winstone Pulp include the Waimarino Forest, Karioi Forest Crown Forestry Licences, the Karioi pulp mill, the Tangiwai sawmill and residential land held for company employees.

Rationale for the Investment:
Ernslaw One and Winstone Pulp both operate in the New Zealand forestry and wood processing industries. Some of Ernslaw One's forest resource is located in the North Island, within economic reach of Winstone Pulp's Karioi pulp mill and Tangiwai sawmill. Ernslaw One operates sawmills situated in Gisborne and Gore.

The investment will provide Ernslaw One with a greater wood supply security for wood processing and provides opportunities for synergies and economies of scale between Ernslaw One's and Winstone Pulp's operations.

The proposed overseas investment is or likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following factors:

Overseas Investment Act 2005:
s17(2)(a)(ii) - Creation/retention of jobs;
s17(2)(a)(iii) - New technology or business skills;
s17(2)(a)(iii) - Increased export receipts;
s17(2)(a)(iv) - Added market competition, greater efficiency or productivity, or enhanced domestic services;
s17(2)(a)(v) - Additional investment for development purposes;
s17(2)(a)(vi) - Increased processing of primary products;
s17(2)(b) - Indigenous vegetation/fauna;
s17(2)(c) - Trout, salmon, wildlife and game;
s17(2)(d) - Historic Heritage;
s17(2)(e) - Walking access;
s17(2)(f) - Offer to sell special land to the Crown.

Overseas Investment Regulations 2005
r28(e) - Previous investments.

ContactDeirdre Norris
Glaister Ennor
P O Box 63
Wellesley Street
AUCKLAND