DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision date21 December 2012
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in approximately 6.6960 hectares of land at Oamaru.
Consideration$1,500,000
ApplicantCanterbury Spinners Limited
Australian Public (77.7778%)
New Zealand Public (22.2222%)
VendorSummit Wool Spinners Limited
Sumitomo Corporation, Japan (100.0%)
Background

The Applicant, a subsidiary of Godfrey Hirst NZ Limited, is in the process of buying the business and assets of Summit Wool Spinners Limited, which includes sensitive land in Oamaru, Otago. The sensitive land contains a number of industrial buildings and is used as a plant to spin carpet and rug yarn.

The Applicant will review the wool spinning business operated on the land and report to the Overseas Investment Office what, if any, changes will be made to the business.

The Applicant will also make a donation to an appropriate body for use in enhancing public area(s) in Oamaru.

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)(f) – Offer to sell foreshore to the Crown

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(e) – Previous investments
28(j) – Mitigating factor

More informationChris Bougen
Chapman Tripp
PO Box 993
WELLINGTON 6140