February 1998 decisions
Hoyts buys out
Endeavour
Hoyts Corporation Holdings (NZ) Ltd, a subsidiary of Hoyts Cinemas Ltd of
Australia, has approval to buy out what was originally one of its most threatening
competitors, Endeavour Multiplex Ltd. After an initial stand-off, however the two
had formed a cosy joint venture:
"The parties to the transaction currently have a 50/50 partnership in the
management/operation of the Hoyts Cinema Complexes throughout New Zealand. It is stated to
date the expertise in the operation, development and growth of the partnership has
substantially been provided by Hoyts. Hoyts Cinemas owns or operates over 130 cinema
complexes in Australia, New Zealand and the US. Furthermore, it is stated the owners of
Endeavour have now decided that they wish divest their 50% interest in order to pursue
other activities."
The price was $39,200,000, although news media reports indicated the
price would be paid in Hoyts shares, issued at a 5% discount to the traded price (Press,
18/2/98, "Hoyts purchase", p.33).
We recorded the beginning of this love-thy-competitor becomes eat-thy-lover process in
the October 1992 decisions:
"The big Australian cinema chain, Hoyts, is merging its Aotearoa multiplex
cinema operations with an Auckland company, Endeavour Multiplex Ltd. This
neutralises the competition that Endeavour had been increasingly offering Hoyts. Hoyts own
the Amalgamated cinema chain; their main competition until now has been the Pacer Kerridge
(formerly Kerridge Odeon) chain, but this is now in trouble, having been placed in
receivership due to the excesses of its owners. The two chains control about 90 percent of
the cinema market (Press, 31 December, 1992) and Hoyts was turned down on
competition grounds by the Commerce Commission when it tried to buy the Kerridge chain.
Multiplex cinemas (multiple cinemas in one complex) were threatening to destabilise this
cosy market sharing arrangement. In Christchurch for example, several proposals were
floated during 1992 for multiplex cinemas, including proposals from the Big Two. Only one
could survive in the city. The one that finally got underway is one being built on the
site of the former Railway Station by Endeavour. By taking over Endeavour, Hoyts now has
its desired multiplex in Christchurch, and once again leaves no independent cinemas in the
city. Endeavour Enterprises is headed by the producer of the "Footrot Flats"
film, John Barnett, and owns a number of multiplexes throughout New Zealand (Press,
7 January, 1993). Alongside its aggressive market behaviour, Hoyts recently cut its
workers’ wages in Auckland."
By the time of this present decision, Barnett had left Endeavour and it was owned by
"Neal Hutton Plowman, Geoffrey John Harley, Christopher Pell Liddell and
Annette Joan Plowman as trustees of the Realm Trust" according to the OIC,
although the Press attributed ownership to a "privately owned company"
connected to Neal Plowman’s family, Endeavour Services Corporation. By now it has
also been shown that Christchurch could support several multiplexes.
Hoyts described itself in recent job advertisement for a business manager for its six
screen Octagon complex in Dunedin as
"a global cinema exhibitor with over 1,250 screens spread over 178 sites
throughout Australia, New Zealand, U.S.A., Mexico and Chile with further expansion
underway in the U.K., Austria and Argentina. Box office admissions exceed 40 million and
the group employs in excess of 4,800 people." (Press, 21/3/98, p.22.)
Hoyt’s main competitors are now Force Corporation (in 1995 12% owned by the Tiong
family of Malaysia, but main shareholder chairman Peter Francis) and Village Entertainment
Property Trust of Australia, which also operate a joint venture. Force sold its half share
in four Auckland multiplexes, which it will lease back, to Village Entertainment in March
1998 for $18 million. The sale was in order to finance a huge new entertainment centre in
Auckland. The $60 million centre, which includes 12 cinema screens and a 450-seat giant
screen cinema, as well as other shops and entertainment, is also planned to be sold to
Village Entertainment on completion. Force also owns 50% of the Rialto art-theatre chain,
and is expanding through a joint venture in Argentina as well as owning cinemas in Fiji. (Press,
28/8/97, "Force in massive centre bid", p.38; 18/10/97, "Force shareholders
approve Aotea project", p.30; 12/2/98, "Force lifts profit 16%", p.21;
23/2/98, "Force sells theatres", p.24.)
Benchmark (Howard
Smith) of Australia buys largest safety manufacturer
Howard Smith Ltd of Australia, which operates in Aotearoa as Benchmark
Building Supplies Ltd, has approval to acquire NZ Safety Ltd/Alsafe Group for a
suppressed amount. "NZ Safety is the largest industrial safety manufacturer and
distributor in New Zealand with a national branch network distributing major national and
international safety brands as well as its own products." The owners of NZ Safety
were NZ Safety Holdings Ltd (56%), Safety Management Holdings Ltd (40%)
and NZSL Superfund (4%), who "wish to sell in order to rationalise
their investment, both in New Zealand and Australia".
Orica (ICI Australia)
sells pharmaceutical division to Zeneca, buys H.B. Fuller
Orica New Zealand Ltd, a subsidiary of ICI Australia Ltd (and recently
renamed Orica from ICI New Zealand), has approval to sell its pharmaceutical division to Zeneca
Pharmaceuticals New Zealand Ltd, a subsidiary of Zeneca Ltd which itself is a
subsidiary of Zeneca Group Plc of the U.K. The price has been suppressed.
"It is stated the proposed acquisition forms part of a wider transaction, which
involves the acquisition of Orica Australia’s assets by the Zeneca Group. It is
stated that Orica is currently the exclusive distributor of Zeneca pharmaceuticals within
New Zealand, which forms part of a previous arrangement following the demerger of Zeneca
from the ICI Group back in 1993. Zeneca state the proposal will enable the company to
distribute its own products within the New Zealand market place."
Zeneca, on its World Wide Web site, describes itself as follows (http://www.zeneca.com/glance.htm):
"Zeneca is a leading international bioscience group active in three main areas of
business: Pharmaceuticals, Agrochemicals and Specialties. We research, develop,
manufacture and market products to improve human health, nutrition and quality of life
around the world.
Our product range includes the world’s largest selling breast cancer treatment,
the world’s leading intravenous anaesthetic, the world’s second largest selling
agricultural herbicide and the UK’s leading meat-alternative brand. We are the
world’s number two in sales of cancer treatments and market the most comprehensive
range of hormonal cancer therapies in the industry. Our agrochemicals business is the
world’s third largest.
Recent additions to our portfolio, which will build on the success of our established
range, include three new cancer therapies, new treatments for asthma and migraine and a
novel crop protection fungicide.
In a separate approach to supplying medicines which combat serious health problems,
Zeneca also aims to provide a range of services which address total healthcare needs. In
the US, our Stuart Disease Management Services helps to develop better quality, lower cost
comprehensive care programmes for patients with cardiovascular disease and asthma. Also in
the US, Zeneca owns Salick Health Care Inc., the leading US multi-site provider of cancer
diagnosis and therapy services. …
Worldwide, we sell in over 100 countries, manufacture in 25 countries and employ over
30,000 people …
In 1996, Group sales totalled £5.4 billion with an operating profit of £1.04 billion
…"
With regard to its pharmaceutical division, Zeneca’s leading pharmaceuticals are
(http://www.zeneca.com/zpharma/glance.htm):
"… the world’s two most widely prescribed branded beta-blockers,
‘Tenormin’ and ‘Inderal’; ‘Nolvadex’, the world’s
largest selling breast cancer medicine; and ‘Diprivan’ the world’s
top-selling anaesthetic which is used routinely in both induction and maintenance of
anaesthesia and also in adult intensive care sedation.
In 1995, these products helped boost Zeneca Pharmaceuticals’ sales beyond £2
billion for the first time in its history …
Zeneca Pharmaceuticals employs over 14,000 people. It has its headquarters in the UK,
but over 93% of British production is exported and the business’ medicines are used
in over 130 countries."
Zeneca Plant Science also produces genetically modified tomatoes, amongst many other
products (press release from Zeneca Plant Science, 27 September 1995, http://134.225.167.114/NCBE/NEWS/zps.html).
Orica is certainly not giving up the ghost however. In January 1998 it bought the
rights to the Levene paint brand name and Levene’s Wairau Park "Levene
Extreme" store on Auckland’s North Shore following Levene’s receivership,
having bought Levene’s paint factory a year before (New Zealand Herald,
15/1/98, "ICI buys rights to Levene name", p.D1).
In February Orica also bought H. B. Fuller Powder Coatings (New Zealand) Ltd in
New Zealand and Australia from H.B. Fuller Company Inc of the U.S.A., again for a
suppressed price.
"It is stated Orica NZ currently produces 1,400 tonnes of powder coatings from its
existing manufacturing sites. The acquisition of the HB Fuller powder coating business in
New Zealand will provide Orica NZ with the ability to significantly expand its existing
power coatings and manufacturing facilities within New Zealand, which in turn will provide
Orica NZ with the ability to meet the ever growing demand for supply within the powder
coatings market."
Fuller has a powder coatings manufacturing facility in Auckland plus sales and
distribution in Australia and New Zealand. It employs about 65 people and has annual sales
of NZ16.7m (Press, 24/3/98, "Orica purchase", p.31).
H. B. Fuller is better known for its glues, which it supplies to the New Zealand timber
industry for example. However its supply of glue elsewhere has been less benign and has
raised big question marks over its ethics. Multinational Monitor, December 1995,
reported ("Glue Maker’s Image Won’t Stick", by Paul Jeffrey, pp 17-20)
as follows:
"GUATEMALA CITY – THE H.B. FULLER COMPANY’S employee profit sharing,
corporate giving and funding of a University of Minnesota chair in corporate ethics have
won it rave reviews from the Socially Responsible Investment (SRI) community and a listing
in the book The 100 Best Companies to Work for in America.
South of the Rio Grande, however, this transnational, with 1995 revenues of $1.1
billion, supplies the drug of choice to Latin American street children seeking an escape
from poverty, abuse and family disintegration. How does a company that makes a product
that does neurological damage to the brains of tens of thousands of children earn rave
reviews among self-described socially responsible investors? …
For more than two decades, Central American plants of St. Paul, Minnesota-based Fuller
have produced shoemaker’s glue containing toluene, a sweet-smelling hydrocarbon
neurotoxin. Millions of Latin American street kids inhale this shoe glue. The kids are
often called resistoleros, a reference to Fuller’s Resistol glue…
The adhesive’s fumes go straight to the frontal lobes, the switchboard of the
brain, and to brain areas that control emotions. Resistol turns off the brain’s
connection to reality, neutralizing stress, pain and fear, taking the place of parental
affection. Short-term use can produce nosebleeds, rashes and headaches. It can also lead
to long-term use because toluene is psychologically addictive. Chronic abuse can cause
neurological damage, kidney or liver failure, paralysis and death.
Fuller insists that the glue was designed for shoes, not immature brains, and that the
company is not responsible for product abuse. ‘We don’t sell to street children.
We sell to legitimate users who are manufacturing a product,’ says Dick Johnson,
Fuller’s executive vice president for investor relations. ‘If people, children
or adults, get it illegitimately, that’s a concern to us, but you’ve got to
remember that’s not our main focus.’
Activists counter that glue makers can address the abuse problem in the production
process. In 1968, the U.S.-based Testor Corporation became an industry model when it added
mustard oil to model airplane glue. At a negligible cost, mustard oil made the glue
difficult to inhale, dramatically reducing Testor glue abuse – and sales."
They asked other manufacturers to follow Testor’s lead, but the manufacturers,
including, Fuller, refused.
"In 1989, the Honduran Congress passed a law that required the addition of mustard
oil to toluene-based products. Fuller responded with a lobbying blitz. David Calvert, an
advocate for street children in the Honduran capital, Tegucigalpa, says Fuller barraged
shoemakers with claims that mustard oil would endanger their health, a tactic he called a
‘campaign of lies.’ Whatever it was, it worked. A government commission decided
that toluene products in Honduras need not contain any mustard oil…
On the ground in Central America, activists – some of whom have received Fuller
funding – say Fuller executives could curb inhalant abuse if they did not have such a
nose for profit. ‘They’ve been very stubborn,’ says Covenant House Latin
American Director Bruce Harris, who says that adding mustard oil to Resistol would cost
just seven cents a gallon. Fuller has not funded Covenant’s programs for street kids
– including resident programs to help kids break their glue addictions – since
the charity criticized company policies.
‘It’s fair to say that when someone we’re funding begins speaking
critically of us, we’re less inclined to continue funding,’ says Fuller’s
Bill Belknap. Fuller still funds other outreach programs ‘that share our viewpoint of
the complexity of the issue,’ he says.
‘Of the 40 to 50 million street children in Latin America, more than half sniff
glue,’ Harris says. ‘Hard-core users go through about a gallon a week.
That’s up to 20 million gallons a week. Do they [Fuller] really want to lose that
market?’…"
ABN AMRO of the
Netherlands buys BZW from Barclays
ABN AMRO Australia Ltd, which is ultimately owned by ABN AMRO N.V. of the
Netherlands (through its subsidiary, ABN ANRO Bank N.V.), has approval to
acquire BZW New Zealand (Holdings) Ltd from Barclays Bank Plc for "approximately
$12.5 million". BZW New Zealand (Holdings) Ltd owns BZW New Zealand Ltd
and BZW New Zealand Nominees Ltd.
"The acquisition forms part of a wider transaction involving the purchase of
shares and assets in Australia. It is stated that Barclay’s Bank Plc have informed
the London Stock Exchange that it wishes to divest itself of its Australasian banking
business. ABN AMRO state the acquisition of BZW forms part of its overall business
strategy to provide global banking services." [sic]
According to Reuters, the total deal was $200 million for BZW’s operations in
Australia and Aotearoa. The name BZW would disappear (Press, 23/12/97, "BZW
brand about to disappear", p.20). ABN AMRO Bank, which is among the top ten banks in
the world by capital, has registered as a bank in Aotearoa, operating as a branch (Press,
3/3/98, "ABN AMRO registered", p.35).
BZW first made its appearance amongst the OIC’s decisions in November 1992, when
we reported:
"Barclays Bank (U.K.) subsidiary BZW New Zealand Ltd (Barclays de Zoete Wedd) has
been given blanket consent by the OIC "to acquire shares ... in New Zealand listed
companies". Nothing could illustrate more clearly the vacuousness of the scrutiny
given by the OIC to overseas investment in this country. Even its expressed
"benefits" come down to no more that it will make overseas purchase of Aotearoa
company shares more attractive: "BZW’s principle activity is the buying and
on-selling of stock exchange listed securities. BZW is seeking to undertake major bought
deals (being deals whereby the pricing risk is borne by the broker). The Commission is
advised that the proposal will create a greater liquidity for the holders of securities of
New Zealand companies, which will enhance the attractiveness of investment in New Zealand
companies. This in turn will support an increase in the availability of equity
capital."
ABN (Algemene Bank Nederland) has been involved for some time in Aotearoa. One of its
escapades was scarcely bathed in glory. In April 1992 we reported that CDL Hotels of
Singapore had taken control of Euro-National Corporation Ltd, with 89% of its shares.
Euro-National, in which ABN subsidiary ABN Nominees (Malaysia) SDN BHD was then a major
shareholder, was the shell CDL used to create what is now the largest hotel chain in
Aotearoa. Describing Euro-National’s past as "one of the grubbiest episodes in
recent commercial history", we reported:
"Euro-National was a merchant bank started during the yuppy feeding frenzy of the
mid 1980s, and which until the CDL takeover was a ‘cashed-up shell’ hovering
around liquidation… What brought it to public notoriety was that a Malaysian
stockbroker, Hwang and Yusoff bought 49.46 percent of its shares – and then proceeded
to try to strip the company of $21.2 million of its liquid assets. The High Court took a
dim view of this and took the unprecedented action of forfeiting 20 percent of its
shareholding – equivalent to a fine of about $1.8 million. Hwang and Yusoff also had
to sell their remaining shares within six months."
Hwang and Yusoff managed to interest CDL in the company, including ABN’s share.
ABN (through ABN AMRO Participates B. V.) is also a 17.4% shareholder in Barenbrug
Holdings B V of the Netherlands, which we reported in January 1997 had approval to acquire
up to 74% of Agriseeds Holdings Ltd, which breeds, produces and markets seeds. Both
companies specialise in grass seeds.
Goodman Fielder buys
out dairy industry shares in Aspak (Meadow-Lea)
New Zealand Margarine Holdings Ltd, a subsidiary of Goodman
Fielder Ltd of Australia, has approval to acquire the remaining 67% of Aspak
Foods Ltd from Milk Products Holdings (N.Z.) Ltd (a subsidiary of the New
Zealand Dairy Board) and Aspak Equities Ltd (owned by "various dairy
companies"). The price was originally suppressed but was released on appeal in June
1998: "approximately $30 million". Margarine Holdings already owned 33%
of Aspak Foods, and "the remaining shareholders, namely Milk Products and Aspak
Equities, have been looking to dispose of their respective shareholders [sic: we presume
this means shareholdings!] for some time".
Aspak Foods processes edible oils and makes margarine. Each of the companies had owned
one-third of Aspak Foods since 1989 (Press, 12/2/98, "Aspak Foods bought
out", p.21). It makes the Meadow-Lea brand of margarine, and the operation was an
attempt by the Dairy Board to hedge its bets on butter.
Aspak had previously expanded, buying Abels from Unilever in 1995, and closing
Abel’s Newmarket, Auckland, margarine factory, moving production to its own new
factory in East Tamaki. In November 1996, Aspak then sold Abels’ bakery raw materials
division to N.Z. Bakels Ltd, owned by EMU AG of Switzerland (ultimately owned by the EMU
Foundation, a Liechtenstein Charitable Trust) (see our commentary on the November 1996 OIC
decisions).
Natural Gas Corp., Bay
of Plenty Electricity construct Kapuni cogeneration plant
Natural Gas Corporation and Bay of Plenty Electricity Ltd have set up a
50/50 joint venture to construct an electricity cogeneration plant at the Kapuni
Gas Treatment Plant in Taranaki. The present OIC decision involves a very small
part of the project: it is a retrospective approval (the plant is almost
completed!) for the joint venture to acquire a lease over 0.1 hectares of land at Kapuni
from Natural Gas Corporation for 19 years and 364 days (there must be legal
significance in a 20 year lease!) for "an annual rental payment of $1.00 per
annum". The only reason it requires approval is that the land, when added to
adjoining land owned by the Corporation or the joint venture, exceeds five hectares.
One partner in the joint venture is Kapuni Energy Ltd, which is a subsidiary of
Bay of Plenty Electricity, itself a subsidiary of Power New Zealand, owned by Utilicorp of
the U.S.A. and Mercury Energy. The other partner is Natural Gas Corporation Energy Ltd,
a subsidiary of Natural Gas Corporation Holdings Ltd, owned 33.3% by The
Australian Gas Light Company, 33.3% by Fletcher Challenge Utilities Investments,
and 33.3% by "members of the public".
Waratah Receivables
sets up
Waratah Receivables Corporation NZ Ltd, a subsidiary of Waratah Receivables
Corporation Pty Ltd of Australia, has approval to acquire "receivables and
related rights" for zero dollars.
"It is stated Waratah intends to develop an administered securitisation programme
in New Zealand which will allow corporates to diversity their funding sources, by giving
them access to funds which are not marketed against that corporate’s lines of credit
with its traditional lenders. It is stated further the proposal will promote a more
efficient development of capital for corporates and banks, by freeing up capital which
would otherwise be tied up in receivables. Overall it is stated the proposal will provide
an improvement in balance sheet and solvency ratios for such corporates and banks."
Taiwan shareholders
buy remaining shares in Universal Beef Packers, Te Kuiti
Mystic Springs Investment Inc, a subsidiary of Wellroc Enterprises Co. Ltd
of Taiwan, has approval to acquire the remaining 6.71% of Universal Beef
Packers Ltd it does not already own, from Chung Chien Chang, a resident of Aotearoa,
for $2,159,545.39. The company owns nine hectares of land in Te Kuiti
where it has its abattoir, employing approximately 150 people.
"The proposal represents a share restructure in order to reduce UBP’s current
debt equity. UBP state the proposal will also provide it with a basis for further
expansion of its current operations. It is stated that the development of a new processing
factory is proposed, which will employ approximately a further 50 persons."
Mystic Springs was given retrospective approval to acquire the 93.29% of the shares of
Universal Beef Packers and control the appointment of its board in August 1997. It was
then described as being owned by Mr J. S. McMahon who held the shares as trustee for Ton
Cheng Min (82.64%), Willy Muh (5.953%), Gin-Shiang Lin (5.413%) and Chung Chien Chang
(5.992%). The rationale for the acquisition was identical to that quoted above.
Philippines
businessman buys Lyttelton Marina
Pacific Marina Holdings Ltd, owned by Mr Victor Villavicencio of the Philippines,
has approval to acquire Lyttelton Marina Ltd, Lyttelton Marina Management Ltd,
and Canterbury Marina Ltd for $600,000. Approximately seven hectares of
leasehold land is involved. The companies are owned by the Lyttelton Port Company,
which is owned 66% by the Christchurch City Council, 14% by AMP,
4% by the Ashburton District Council, and 12% by "members of the
public" (it is not clear who owns the other 4%); and the Banks Peninsula District
Council. This privatisation of the marina is opposed by many locals. However the OIC
insists that
"Mr Villavicencio has significant business experience with marina development and
management including a leading interest in the Subic Bay marina development at Subic Bay
(north of Manila). … The proposal represents the introduction of approximately
$5,400,000 in risk capital which will ensure the development of the new Lyttelton Marina.
The Commission is advised the Canterbury area is in desperate need of an
upgrade/enhancement to its existing marina facilities. In addition it is stated the
proposed development is fully supported by both the Lyttelton Port Company and the Banks
Peninsula District Council. The port company and council originally planned to undertake
the development themselves however, the initial offer did not proceed."
PPL
("Dolly") buys more Taupo land for inseminated sheep breeding
PPL Therapeutics (NZ) Ltd, a subsidiary of PPL Therapeutics Plc of the U.K.,
has approval to acquire 93 hectares of land on Tihoi Road, State Highway 32, at
Whakamaru, Taupo for $1,250,000.
"PPL Therapeutics PLC is a United Kingdom public company primarily involved in the
bio-production of commercially valuable therapeutic protein. … PPL intend to acquire
the property for the purpose of expanding their existing inseminated sheep breeding
programme located within the Whakamaru District. It is stated the proposal is likely to
provide additional employment opportunities to the local community, and ensures PPL’s
parent company ongoing commitment to its New Zealand operations evidenced with an
estimated NZ$70 million being invested to see the development of a new purifying facility
in New Zealand."
PPL is the company which made headlines by cloning the sheep "Dolly" in the
U.K. In May 1996 we reported that PPL Therapeutics had approval to acquire a 58 hectare
farm at Whakamaru for $1,050,000. In that case, PPL proposed
"to use the farm to breed a production flock of transgenic ewes producing a human
protein in their milk. Such an activity is subject to government approval to the importing
of semen from transgenic rams into New Zealand. The flock will be farmed to provide milk
which will be processed for the valuable therapeutic protein. The Commission is advised
that if such approval is not forthcoming, the farm will be used to breed high health
status animals for export to the United Kingdom."
PPL, which is based in Edinburgh, specialises in producing "therapeutic proteins
(or food proteins etc) in the milk of transgenic animals (mostly sheep)", and exports
to Western Europe, Australasia, the U.S. and Japan (ref: http://www.webscot.com/sba/ppl.htm).
In 1995 the Minister for the Environment, Simon Upton, announced that an application to
field test genetically modified sheep had been declined, but this has since been reversed.
Milburn buys another
20% of McDonald’s Lime from Fernz
Milburn New Zealand Ltd, which is approximately 73% owned by Holderbank
Financiere Glaris Ltd of Switerland, has approval to acquire a further 20%
of McDonald’s Lime Ltd for $6,000,000, bringing its shareholding to 72%.
The shares are being purchased from Fernz Corporation Ltd subsidiary Medisup
Services Ltd. Involved is approximately 334 hectares of freehold land and
approximately 64 hectares of leasehold land in Waikato/Central North Island
(Te Kuiti, Otanake Survey District, Pukunui, Aorangi and Rangitoto
Tuhua). McDonald’s is engaged in "quarrying limestone and the production of
industrial and agricultural lime" and "Milburn’s primary business
activities include quarrying, cement manufacture, bulk cement storage and lime works.
Milburn also has concrete plants throughout New Zealand and operates shipping routes
around New Zealand."
L&M of
Switzerland, Hong Kong, and the U.K., buys 92 ha. for mining in Otago
L&M Mining Ltd, owned by Auriferous Mining Ltd of Switzerland,
Hong Kong, and the U.K., has approval to acquire approximately 92 hectares of
land in Glenmore, Milton, Otago (adjoining conservation land) for $750,000
for mining. The vendors, the Clark family will continue to farm the land that is
not being mined.
L&M claims that it "has a history in New Zealand as a prudent and
environmentally sensitive miner including the rehabilitation and restoration of mined land
back to productive farmland." Nonetheless, "the proposed acquisition will enable
L&M to maximise the return from the ore resources contained on the property."
Auriferous is equally owned by Tangent International Ltd, majority owned by Werner
Muller of Switzerland; Campanie International Holdings Inc, majority
owned by Kwok Wai Chiu of Hong Kong; and Rysaffe Trustee Company Ltd
as trustee for Geoff London of the U.K.
Auriferous bought L&M and DML Mining from the Skellerup/Maine group in February
1997 as one of a number of sales by Skellerup prior to its crash. It was stated then that
"without the involvement of Auriferous the outlook for the business is at best a
severe reduction in the size of the business or at worst its failure." It is
therefore unclear what value to put on L&M’s "history in New Zealand as a
prudent and environmentally sensitive miner" given that its ownership has changed.
FAI Properties buys
Downtown Centre, Auckland, from St Lukes
FAI Properties NZ Ltd has approval to acquire The Downtown
Centre, on the corner of Customs and Lower Albert Streets, Auckland
Central, from St Lukes Group Ltd for $41,000,000. FAI Properties NZ is
owned 51% by M. and C. Investments which is two family trusts whose trustees
are Allan Brooke Mitchell and Clifford James Cook of Aotearoa; and 49% by
FAI Overseas Holdings Pty Ltd, a subsidiary of FAI Insurances of Australia.
The Downtown Centre is on 0.6770 hectares of land. FAI is "an active property
investor" but they "propose to further develop/enhance ‘the Downtown
Centre’ and its associated car parking facilities."
Massey land bought by
Universal Homes from Fletcher Homes for subdivision
Universal Homes Ltd, of China, has approval to acquire 4.8 hectares of
land in Rush Creek Drive, Massey, Auckland, from Fletcher Homes Ltd for
residential subdivision, for $2,850,000. The land adjoins a designated recreational
reserve. Universal Homes is owned by China Everbright Pacific Ltd, which is
listed in Singapore but owned 27% by China Everbright Holdings Ltd of
China. The land is currently being developed by Fletcher "but has become
surplus to their requirements". "UHL intend to develop the property in two
stages creating approximately 115 housing sites, aimed at the affordable housing market,
in a bid to combat the current housing shortage faced by Auckland City residents."
Universal last received approval to purchase land for subdivision in October 1997. That
was in Silverdale, Auckland.
Refusal then approval
in one month: Australian couple buy 142 ha. in Waikato
Robert Pryke Investments (NZ) Ltd owned by Mr Robert Lindsay Pryke and Mrs
Joan Carol Pryke, both residents of Australia, have had an application to buy
land in the Waikato refused, then approved within the same month. The land is a
dairy farm of approximately 142 hectares at Grove Road, Te Pahu, near Hamilton,
for $1,900,000. On 4 February the application was refused because "it was not
considered to be in the national interest". Yet by 27 February, it was "approved
as it met the criteria":
"The Commission is advised the applicants’ have business experience and
acumen and are demonstrating financial commitment proposal. The Commission is further
advised the applicants’ are of good character and not the kind of persons referred to
in section 7(1) of the Immigration Act 1987. The Commission is further advised that the
Prykes’ are in the process of taking up New Zealand permanent residency and wish to
acquire the property for the purpose of an investment and place of residence for when they
take up permanent residence. The property will continue to be utilised as a dairy farming
unit for dairy production under the management of a 50/50 sharemilker. In addition it is
stated the Prykes intend to ensure the property is kept in a productive use for dairying,
increasing production where possible, using modern dairying techniques whilst at the same
time, protecting the environment and respecting the areas which have been planted in trees
on the property to date."
Nothing very special there. Presumably, their lawyer, Mr S. Makgill of McCaw Lewis
Chapman of Cambridge, didn’t at first write the correct magic incantation that allows
everyone else through on such flimsy evidence of "national interest".
New Zealand Aluminium
Smelters buys land from Comalco for Tiwai Smelter
New Zealand Aluminium Smelters Ltd has approval to acquire approximately five
hectares of land at Tiwai Point, Southland from one of the company’s
owners, Comalco New Zealand Ltd, for $2,000. The land adjoins the
company’s Tiwai Point aluminium smelter.
"Since 1969 NZAS has operated an aluminium smelter at Tiwai Point, comprising
approximately 87 hectares in area. The smelter produces aluminium, aluminium alloys and
other aluminium products, and has a productivity [sic] capacity of 313,000 tonnes per
annum. The transfer of the land will legalise a previous boundary of convenience, between
the parties, following the upgrading of Tiwai Point undertaken in 1996. In essence the
transaction ensures that NZAS is the registered proprietor of the land upon which the
smelter is located."
New Zealand Aluminium Smelters Ltd is 79.36% owned by Comalco New Zealand Ltd
and 20.64% by Sumitomo Chemical Company Ltd of Japan. The OIC states
that Comalco New Zealand is "wholly owned through two holding companies by Comalco
Ltd, a company incorporated in Australia". In fact Comalco is part of the
Rio Tinto empire, the largest mining company in the world, based in the U.K.
Land for forestry
- Blakely Pacific Ltd (as trustee of the South Blakely Trust) of the U.S.A.,
has approval to acquire three hectares of land at 1729 Te Matai Road, Te Puke,
Bay of Plenty for $160,000 as residential accommodation for its (yet to be
appointed) on-site manager for the adjoining forests and its other forests in the area. It
sold the property to the current vendors for a lifestyle block in September 1995. The last
time Blakely applied for approval to buy land for its forestry holdings was in November
1997 when it bought 1,176 hectares of land at Milton, Otago. In September 1996 Blakely
acquired 1,849 hectares in Otago for forestry. They have over 6,500 hectares in the North
Island.
- Hikurangi Forest Farms Ltd, owned by Glenealy Plantations (Malaya) Berhad
of Malaysia, has approval to acquire the 555 hectare Tuahu Station,
Tauwhareparae Road, inland from Tolaga Bay, East Coast (Gisborne) for $765,000.
The land, part of which is held for conservation purposes under the Conservation Act 1987,
"has been offered on the open market for a period in excess of five years" and
is currently used for grazing. Hikurangi intend to convert the property for afforestation,
incorporating it into their existing forestry holdings in the region. In October 1997,
Hikurangi acquired the 420 hectare Weka Station adjoining its Waimanu Forest in the
Waimata District, Gisborne, East Coast, for afforestation. Glenealy bought Hikurangi
Forest Farms from Fletcher Challenge Forests Ltd for $210 million in December 1996 when
Fletchers sold it to raise money for its Forestry Corporation purchase. Hikurangi now owns
approximately 34,000 hectares of freehold land, forestry/cutting rights, and leasehold
land on the East Coast.
Other rural land sales
- Clearwood Developments Ltd, owned 66.6% by E. J. Cleary and family of
Ireland, and 33.3% by the K.B. and R.B. Lockwood family trusts of
Aotearoa, has approval to acquire a 114 hectare dairy farm on Saulberty
Road, Hamilton, Waikato, for $2,000,000 for residential subdivision. They
intend to convert ten hectares of it to 33 "farm park" residential lots, each
with power, telephone and water, and resell the rest as a dairy farm. In July 1997 we
reported that Eire Cattle Company Ltd, owned by the Cleary Family Trust had approval to
acquire 50 hectares of land on Plantation Road, Te Kauwhata, Waikato for $462,500 for
dairy conversion and merging with the company’s adjoining property. The Trust’s
trustees were Mr Eamon Joseph Cleary of Ireland and Mr J. Henderson of Aotearoa. The
beneficiaries of the trust were Mr Cleary, his children, and "remoter issue".
The Cleary family also had other significant investments in New Zealand. In September
1996, Clearwood Developments Ltd received approval to buy seven hectares of land then used
as a "residential lifestyle block" on Whatawhata Road, Hamilton, for $1,400,000,
for residential subdivision. It was given approval to buy seven hectares at Tamahere,
Hamilton for $900,000 in April 1996, also for subdivision.
- David Endersby, a U.K. citizen resident in Malaysia has approval to
acquire 16 hectares of land in Renwick West, Marlborough, for $345,000.
The land "forms part of a subdivision and development of a larger pastoral farm,
which had become uneconomic".
"Mr Endersby intends to establish a vineyard on the property and to ultimately
produce his own label wine for export particularly to the Middle East. In addition, it is
stated the vineyard will be developed within a three year timeframe. Mr Endersby and his
wife who have both been granted New Zealand permanent residency status, advise they plan
to reside permanently in Marlborough within the next 18 months following the sale of his
business interests in Malaysia."
- Tasman Agriculture Ltd, 54.77% owned by Brierley Investments Ltd of
Malaysia, has approval to acquire 449 hectares of land in Blackgully
Road, Heriot, West Otago for $2,170,000. Tasman will convert the current
sheep/beef operation to dairying, as it has done with a large number of other farms.
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