Decision Consent granted
Section 12(b) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005
Decision MakerThe Minister for Land Information and the Associate Minister of Finance
Decision Date21 September 2018
InvestmentAn overseas investment in sensitive land and significant business assets, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Tegel Group Holdings Limited which owns or controls interests in approximately 321.4 hectares of sensitive land, being:
  • a freehold interest in approximately 19.2097 hectares at 464-476, 485, 487-499 Richmond Road and 585 Manutahi Road Lepperton, Taranaki; and
  • a leasehold interest in approximately 0.8750 hectares at 243 Dunns Crossing Road, Rolleston, Canterbury; and
  • a freehold interest in approximately 19.3685 hectares at 736 Tramway Roads (corner Boultons Road), Darfield; and
  • a freehold interest in approximately 4.1561 hectares at 9A, 95 Tegal Road, and 270 Flanagan Road Drury South Auckland; and
  • a leasehold interest in approximately 1.9240 hectares at 757 Egmont Road Hillsborough Taranaki; and
  • a leasehold interest in approximately 7.6876 hectares at 229 Kaipi Road near Egmont Village, Taranaki; and
  • a leasehold interest in approximately 9.4145 hectares at 79-99 Paraite Road and 2 De Havilland Drive West New Plymouth and; and
  • a leasehold interest in approximately 6.8930 hectares at 176 Bristol Road, New Plymouth; and
  • an equitable Interest in the freehold and leasehold of approximately 251.9185 hectares at 5726, 5727, 5764, 5780, 5802 State Highway 12, 65, 89 Whakahara Road, Arapohue, Kaipara District.

Consideration

$437,000,000
ApplicantBounty Holdings New Zealand Limited
Various Cheng Family Members, Philippines (100%)
VendorTegel Group Holdings Limited
New Zealand Public (25.78%)
United States Public (23.5215%)
Various overseas persons (15.648%)
Australian Public (9.52%)
Colonial First State Asset Management (Australia) Limited, Australia (5.01%)
Perpetual Investment Management Ltd, Australia (5%)
Singapore Public (3.807%)
Cayman Islands Public (3.042%)
Dutch Public (2.7045%)
United Kingdom Public (2.3625%)
Federal Republic of Germany, Germany (2.0115%)
Canada Public (1.593%)
Background

The Applicant is a member of the Bounty Group, which is a Philippines-based group of poultry companies owned by the Cheng family. The Bounty Group’s operations include broiler, breeding and poultry processing, egg production, hog farming, feed-milling, and food retailing. The Applicant has made full takeover offer under the Takeovers Code to acquire the shares in Tegel Group Holdings Limited, which is an NZX listed company.

Tegel is a large poultry producer involved in breeding, hatching, processing, marketing, sales, and distribution of poultry products throughout New Zealand and to export markets. The Applicant intends to focus on exploring new export markets and creation of new jobs in areas including research and development, production and sales and marketing.

The proposed investment is likely to benefit New Zealand through additional export receipts for Tegel products in the Philippines and eventually in other Asian export markets, including Indonesia or Singapore. In addition, the Applicant intends to create opportunities for consultancy and secondments of senior Tegel staff to Bounty Group entities. The Applicant estimates that the expansion of Tegel following the proposed investment will also result in at least 15 new job opportunities.

More informationDavid Hoare
Russell McVeagh
PO Box 8
AUCKLAND