DecisionConsent Granted
Section 12(b) Overseas Investment Act 2005
Decision Date11 May 2017
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100% of the shares of Spotless Group Holdings Ltd (Spotless) which owns or controls a leasehold interest in approximately 2.5304 hectares of land at 1A Carrington Road, Point Chevalier, North Auckland.
New Zealand Asset ValueApproximately $327,900,000 as at 30 June 2016
ApplicantDowner EDI Services Pty Ltd
Australia (47.31%)
Various (35.17%)
United Kingdom (10.2%)
United States of America (7.0%)
New Zealand (0.32%)
VendorExisting Shareholders of Spotless Group Holdings Ltd
Australian Public (99.49%)
Various overseas persons (0.51%)
Background

The Applicant’s parent company (Downer EDI Limited or Downer) is an ASX listed company. Downer is a multinational company which provides outsourced services (including engineering and infrastructure services) to customers in several countries including Australia and New Zealand.

The Applicant is a 15% shareholder in Spotless and has made a takeover offer to acquire all the remaining shares in Spotless.

The Applicant considers that Spotless’ financial performance indicates that there is an opportunity to operate the Spotless business more efficiently. The Applicant considers that it, and Downer more generally, has a long history of successfully acquiring, integrating and operating other businesses, including in New Zealand, and considers that it is well positioned to improve Spotless’ financial performance.

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 Regulations 2005
28(a) – Consequential benefits
28(c) – Affect image, trade or international relations
28(e) – Previous investments

More informationDean Alderton
Bell Gully
PO Box 4199
AUCKLAND 1140