DecisionConsent Granted
Section 12(b) Overseas Investment Act 2005
Decision date16 June 2010
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100.0% of the shares of Electropar Limited which owns or controls a leasehold interest in 0.6000 hectares of land at 35 Lady Ruby Drive, East Tamaki, Auckland.
Consideration$20,500,000 less debt (the amount of which is to be finalised on the completion date) and subject to a working capital adjustment and an earn-out adjustment.
ApplicantPreformed Line Products Company
United States Public (99.0%)
Various overseas persons (1.0%)
VendorExisting Shareholders of Electropar Limited
New Zealand Public, New Zealand (100.0%)
Background

The Applicant is an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operator, information and other similar industries.

Electropar Limited is a designer and manufacturer of a range of equipment for the electricity distribution and transmission industry, the oil and gas industry, and the naval ship building defence industry.

The acquisition is consistent with the Applicant's strategy to expand its global business in New Zealand.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(iii) – Increased export receipts

Overseas Investment Regulations 2005
28(e) – Previous investments

More informationDavid Hoare/Alex Mamo
Russell McVeagh (Auckland)
PO Box 8
AUCKLAND