DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005 EDIT
Decision Date22 September 2016
Investment

An overseas investment in sensitive land, being Tiaki I LLC’s acquisition of rights or interests in a further 5.17% of the securities and sensitive land of Tiaki Plantations Company, which owns or controls a leasehold interest in approximately 20 hectares of land at Tamarangi Drive, Kawerau.

An overseas investment in significant business assets, being Tiaki I LLC’s acquisition of rights or interests in a further 5.17% of the securities of Tiaki Plantations Company, the value of the New Zealand assets of Tiaki Plantations Company and its 25% or more subsidiaries being greater than $100m.

An overseas investment in sensitive land, being John Hancock Separate Investment Account Number Seventy Two’s (an existing shareholder of Tiaki I LLC) acquisition of rights or interests in up to 100% of the securities and sensitive land of Tiaki I LLC, which indirectly owns or controls a leasehold interest in approximately 20 hectares of land at Tamarangi Drive, Kawerau.

An overseas investment in significant business assets, being John Hancock Separate Investment Account Number Seventy Two’s (an existing shareholder of Tiaki I LLC) acquisition of rights or interests in up to 100% of the securities of Tiaki I LLC, which indirectly owns up to 58.31% of the securities of Tiaki Plantations Company, the value of the New Zealand assets of Tiaki Plantations Company and its 25% or more subsidiaries being greater than $100m.

Consideration$17,853,420
ApplicantTiaki I LLC
United States of America (88.84%)
Canada (10.77%)
Hong Kong (SAR) (0.36%)
Philippines Public (0.03%)
VendorHastings Forestry Investments Limited (as trustee of the Hastings Forestry Trust No. 1)
Hastings Funds Management Limited, Australia (100.0%)
Background

The Applicant is currently a shareholder of Tiaki Plantations Company (TPC), as to 53.14%.

TPC is a New Zealand forestry company that owns or controls a leasehold interest in approximately 20 hectares of sensitive land at Tamarangi Drive, Kawerau.

The Vendor is currently a minority shareholder in TPC.

The proposed investment is an internal restructure, which will result in the Applicant increasing its shareholding in TPC to 58.31%.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

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

More informationDavid Raudkivi
Russell McVeagh
PO Box 8
AUCKLAND