Section 12(b) Overseas Investment Act 2005
|Decision Date||11 May 2017|
|Investment||An 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 Value||Approximately $327,900,000 as at 30 June 2016|
|Applicant||Downer EDI Services Pty Ltd|
United Kingdom (10.2%)
United States of America (7.0%)
New Zealand (0.32%)
|Vendor||Existing Shareholders of Spotless Group Holdings Ltd|
Australian Public (99.49%)
Various overseas persons (0.51%)
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
|More information||Dean Alderton|
PO Box 4199