DecisionConsent granted retrospectively
Sections 12(a) and 12(b)
Overseas Investment Act 2005
Decision Date11 August 2016
Investment

An overseas investment in sensitive land, being Allied Faxi New Zealand Food Co., Limited’s acquisition of a freehold interest in approximately 4.4529 hectares of land at 112 Kerepehi Town Road, Kerepehi (the “Land”) (retrospective investment).

An overseas investment in sensitive land, being Beijing Sanyuan Foods Co., Ltd acquisition of an interest in up to 90% of the issued share capital of Beijing Allied Faxi Food Co., Ltd which indirectly owns or controls a freehold interest in the Land (prospective investment).

 RETROSPECTIVE INVESTMENT
Consideration$2,860,000
ApplicantAllied Faxi New Zealand Food Co., Limited
Chinese Government, China, People's Republic of (32.333%)
Yu Pan, China, People's Republic of (30.0%)
PEG China Private Equity Fund L.P., China, People's Republic of (23.282%)
Beijing Allied Hongda Trading Co., Limited, China, People's Republic of (10.276%)
Beijing Jingguoguan II Equity Investment Management Centre L.P., China, People's Republic of (4.109%)
VendorNew Nature NZ Limited
Yu Pan, China, People's Republic of (100%)
 PROSPECTIVE INVESTMENT
Asset Value$15,000,000
ApplicantBeijing Sanyuan Foods Co., Limited
Chinese Government, China, People's Republic of (46.9487%)
China Public (21.86%)
Shanghai Pingrun Investment Management Co., Ltd, China, People's Republic of (16.67%)
Skysoar Limited, British Virgin Islands (10.1921%)
Shanghai Fosun Chuanghong Equity Investment Fund Partnership (L.P.), China, People's Republic of (3.78%)
Wii Pte Limited, China, Singapore (0.4691%)
Various overseas persons (0.08%)
VendorExisting shareholders of Beijing Allied Faxi Food Co., Limited
Chinese Government, China, People's Republic of (46.19%)
PEG China Private Equity Fund L.P., China, People's Republic of (33.26%)
Beijing Allied Hongda Trading Co., Limited, China, People's Republic of (14.68%)
Beijing Jingguoguan II Equity Investment Management Centre L.P., China, People's Republic of (5.87%)
Background

Allied Faxi New Zealand Food Co., Limited acquired the Land for the purpose of establishing an ice cream factory. It has undertaken significant investment to develop the factory and has created numerous new job opportunities.

The factory is expected to start exporting ice cream to China by the end of 2016.

The prospective investment relates to Beijing Sanyuan Foods Co., Limited acquiring an interest in an upstream shareholder of Allied Faxi New Zealand Food Co., Limited, being Beijing Allied Faxi Food Co., Limited. Beijing Sanyuan Foods Co., Limited and Beijing Allied Faxi Food Co., Limited are associated as the Chinese Government has a significant interest in both entities.

Beijing Allied Faxi Food Co., Limited’s indirect interest in the Land comprises a relatively small portion of its total assets.

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) – Jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products

Overseas Investment Regulations 2005
28(b) – Key person in a key industry
28(c) – Affect image, trade or international relations

More informationTim Tubman
Chapman Tripp
PO Box 2206
AUCKLAND 1140
Retrospective penalty$10,000.00