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Tommy Suharto sells Lilybank Station to mate in Singapore for one dollar Mr L.Y.A. Poh of Singapore has approval to acquire Buckcorp Holdings No 68 Ltd from Hutomo Mandala Putra for $1. Buckcorp owns Lilybank New Zealand Ltd, which in turn owns the Lilybank Station in the Canterbury high country: eight hectares of freehold land at Lilybank Safari Lodge, Lilybank Station, near Lake Tekapo, Canterbury and 2,136 hectares of Crown Pastoral Lease at Pastoral Run 78, Lilybank Station. Hutomo Mandala Putra is the given name of Tommy Suharto, son of deposed Indonesian dictator and corruption king, President Suharto. The context and meaning of this transaction are fully explained in Foreign Control Watchdog (No. 92, December 1999, "Seize the Suhartos’ New Zealand Assets", by Murray Horton, p.1-7), which calls for the station, along with other Suharto assets in Aotearoa, to be seized because of the record of theft and mass murder by this family. The sale made newspaper headlines in the Christchurch Press and elsewhere. Suffice it say here that L.Y.A. (Alan) Poh was 5% owner of Buckcorp when it originally purchased Lilybank Station in 1992 for $2.2 million (although he was not part of the 1992 OIC approval). It was claimed by Charles Levin, investment banker acting for Lilybank New Zealand Ltd, that the present price of $1 (yes, one dollar), is because of the level of debt that the operation had incurred in the meantime. It is just as likely that Tommy is parking the asset with Poh while he is under attack in Indonesia for his dealings. The official story reported by the OIC is that Tommy just didn’t have time to take interest in Lilybank any more, and that Alan Poh, not being so rich, would have. It goes as follows: "In 1992 Mr Hutomo Mandala Putra was granted consent to acquire up to 100% of the share capital of New Zealand Trophy Guide Service Ltd (now Lilybank New Zealand Ltd) for a consideration of $2.2 million. Mr Hutomo indicated a keen interest in safari hunting and this is what attracted him to the property. Mr Hutomo proposed to establish a Lodge and a safari/hunting operation on the property primarily aimed at the international tourism market. The Commission is now advised that the safari activities on the property have ceased totally and the property is now operated as a deer farm and home stay. It is claimed that Mr Hutomo’s investment in Lilybank Station is not significant enough to warrant his personal attention and the business venture has suffered as a consequence. An agreement has been reached for Mr Poh who currently holds a 5% shareholding in Buckcorp to increase his interest to 100%. The Commission is advised that by virtue of the relative difference in asset positions between Mr Poh and Mr Hutomo, the investment will be far more significant to Mr Poh and he will devote a considerable portion of his time and energy to it. The Applicant claims he will obtain a better financial performance by closer management and by providing further capital to expand the deer farming side of the activities. The applicant also proposes the marketing of Cervena under a ‘Lilybank’ brand in Asia and further marketing of the home stay side of the business, also in Asia." The OIC approved this transaction in September, several months after the sale was reported in the news media (July). It is not clear when the sale was officially completed. A further detail should be noted. When the sale to Tommy was approved in September 1992 (see our commentary for that month), the station was 27,526 hectares, all but 8 hectares leasehold. Since then some 25,000 hectares has been repossessed by the Department of Conservation, after long arguments and resistance from Suharto – even though the 1992 OIC approval noted that "some of the land ‘is due to be surrendered to the Department of Conservation in terms of a Land Improvement Agreement’." That is a story in itself. Union-buster Borders books and music retail stores into Auckland Borders New Zealand Ltd, a subsidiary of Borders Group Inc of the U.S.A., has approval to commence business in Aotearoa, with an initial investment of $12,500,000. The company "intends to operate a Borders Books and Music retail store and ancillary café at leased premises in central Auckland. The investment in New Zealand is part of a global expansion by Borders Group Inc, a leading international retailer and operator of large format multi-media bookstores with stores in the U.S., U.K., Australia and Singapore." Borders, while having a liberal reputation in the past, have been under siege for the last four or five years in the U.S. for their rabid anti-union policies. In a celebrated case, a model employee was sacked by one of their stores for union organising. Their case has been taken up by TV anti-hero Michael Moore (no relation of Mike Moore of the WTO). He was banned from Borders book shops in 1996 when he supported the unionists’ case and invited protesters into one of his book signings: "So why was I banned from Borders? My book was doing well. It has been on the New York Times best-seller list for a month and was the number two best-selling Random House book for the entire Borders chain. I’ve been banned, I found out, because I made the mistake of uttering a five-letter word, the dirtiest word in all of corporate America – ‘union.’ Back in September, on the second day of my tour, when I arrived at the Borders store in downtown Philadelphia, I found nearly 100 people picketing the place because Borders had fired a woman named Miriam Fried. She had led a drive to organize workers at the store into a union. The effort failed, and, a few weeks later, Miriam was given the boot. When I found this out I told the Borders people that I have never crossed a picket line and would not cross this one. I asked the demonstrators if they wanted to take the protest inside. They thought it was a good idea. I had no desire to cause a ruckus, so I asked Borders management if it was O.K. to allow the protesters in. They said yes. So we all came into the store, I gave my talk, I gave Miriam the microphone so she could talk, everyone behaved themselves and it was a good day all around – including for Borders, which ended up selling a lot of books, breaking the record for a noontime author at that location. (The record had been held by George Foreman, and I now like to tell people only Ali and I have beaten Foreman.) I also announced that I would donate all my royalties for the day to help Miriam out. Although Anne Kubek, Borders’ corporate V.P. in charge of labor relations, had approved my bringing the protesters inside, upper management decided that she had made a mistake – and they were going to take it out on me. On the following Tuesday I was scheduled to speak at the new Borders store in New York’s World Trade Center. When I arrived, I was met by two Borders executives. They had flown in from Michigan just to stop me from speaking. The executives, flanked by two security guards, explained that I could come into the store and sign books, but I would not be allowed to talk to the people who had come to hear me. They said that the ‘commotion’ I had caused in Philly raised "security concerns." I couldn’t believe I was being censored in a bookstore. " (From "Banned by Borders", by Michael Moore, http://www.thenation.com/issue/961202/1202moor.htm) Their management manual, written by the same Anne Kubek (above), "Union Awareness Training For Borders Managers" (subtitled "CONFIDENTIAL PROPERTY OF BORDERS, INC.") has become a classic of anti-unionism. It begins: "Borders’ Position On Unions Our Management Philosophy Statement Borders is committed to maintaining an employee relations climate which promotes maximum personal development and achievement. We are dedicated to treating our employees fairly and providing good working conditions, competitive wages and benefits, and above all, the respect that each employee deserves . We also believe in open and direct communication which permits the resolution of employee problems in an atmosphere of mutual trust, responsive to individual circumstances. The company shall continue its efforts to enhance these objectives. We do not believe that our employees would benefit from outside intervention into these relations, but firmly believe that the best interests of our employees can be served without third-party interference, particularly a union. We greatly value our ability to work with employees individually without their being subjected to burdensome union costs, complicated rules and costly work stoppages." It gives a list of 15 "Early Signs of Union Activity", such as sinister activities like "2. Employees gather in small groups of twos and threes and immediately halt their conversations when managers approach. 4. Employees start spending more than their normal or allotted time on break and are often late getting back to work. 5. Employees who are not normally seen talking to one another begin associating more regularly. Strange alliances begin to form. 6. Employees start having regular meetings or bar nights without inviting managers, back office employees, trainers, or lead clerks." For more such gems, see http://www.infoshop.org/texts/bordersmemo.html. Other information on Borders and unionisation can be seen at http://www.infoshop.org/bookstores.html and http://www.retailworker.com/borders/index.htm. Telecom can buy up to 49% of EDS Telecom Corporation of New Zealand Ltd has approval to acquire up to 49% of EDS (New Zealand Ltd) from EDS World Corporation (Far East) or EDS (New Zealand) Ltd, both owned 100% by Electronic Data Systems Corporation of the U.S.A. The price has been suppressed. The purchase is part of a contracting-out and alliance relationship between the two companies, and also involving Microsoft Corporation. See our commentary on the OIC’s August 1999 decisions for details. While Telecom has the right to buy up to 49% of EDS, it has so far only bought 10%, but plans to increase its shareholding over the next four years. The OIC gives a very different account of the ownership of Telecom in this decision than it did in the August decision. It shows Telecom as being owned 29.95% in Aotearoa, and by
Hussman of the U.S.A. gets retrospective approval to buy McAlpine refrigeration In two decisions, Hussman International Inc of the U.S.A. gets approval to expand its empire in Aotearoa, and to consolidate its ownership of it. In the first decision, Hussman Australasia has retrospective approval to acquire McAlpine Investments Ltd for A$6,000,000. McAlpine had been 97.09% owned in Aotearoa and 2.91% in Australia. Hussman acquired McAlpine in 1998 but "consent under the regulations was overlooked at that time as the consideration payable did not exceed $10 million but it has subsequently been determined that the total assets of McAlpine did exceed $10 million". If that is the case then Hussman obviously got a bargain, at A$6 million. Hussmann "manufactures commercial refrigeration equipment and systems and has a global manufacturing network". It was represented in Australasia through a licensee distributor agreement with McAlpine, which was "financially troubled" at the time according to Hussmann. It operated as McAlpine Triangle Australasia and sold refrigeration and air-conditioning equipment. A significant shareholder who sold his shares was former National Party cabinet minister, Barry Brill (Press, 21/8/98, "Refrigeration buy", p.28). McAlpine is now known as McAlpine Hussman Ltd. Hussmann Australasia Ltd was at the time owned 65% by Hussman International Inc, 33.98% by shareholders in Aotearoa, and 1.02% by Australian shareholders. In the second decision concerning Hussmann this month, Hussman Netherlands B.V., a subsidiary of Hussmann International, is given approval to acquire the Australian shareholding for $123,456. "It will continue to provide technical and financial support to McAlpines to enable expansion of the New Zealand manufacturing base of Hussman design products." Agfa-Gevaert buys Bayer subsidiary’s imaging technology business Agfa-Gevaert NZ Ltd, of Germany (35% owned by Bayer AG of Germany, 65% in German public shareholdings) has approval to acquire the imaging technology business of Bayer NZ Ltd for $18,236,348. "The proposed transaction is the result of the listing of Agfa in Europe and the worldwide restructuring that is required as a consequence." It enables the two companies to "increase their focus on their respective core businesses". New Taiwanese owners for Universal Beef Packers Ltd UBP Ltd of Taiwan has approval to acquire Universal Beef Packers Ltd from Wellroc Enterprises Co. Ltd of Taiwan for a sum "to be advised". The company has an abattoir, employing approximately 180 people, on nine hectares of land at Te Kuiti, Waikato, where it processes meat for export. "Universal requires further capital investment and support to fund its growth and development: such capital is not available from Wellroc." UBP is owned by Jack Lin (46%), Patty Lin (40%), Heui-Lan Wu (20%), and Seng-Man Lin, Louis Li, Henry Shiau, and Tony Wo (4%). In February 1998 we reported that Mystic Springs Investment Inc, a subsidiary of Wellroc Enterprises Co. Ltd of Taiwan, had approval to acquire the remaining 6.71% of Universal Beef Packers Ltd it did not already own, from Chung Chien Chang, a resident of Aotearoa, for $2,159,545. The company then employed approximately 150 people at Te Kuiti. "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. Jhunjhnuwala family of Hong Kong reorganises Auckland properties Hind Properties Ltd, owned by the Jhunjhnuwala family of Hong Kong, has approval to acquire a number of property companies from another company they own, Hind Hotels International Ltd, for $9,738,035. While there is no change in beneficial ownership (although they intend "ultimately" to list Hind Properties on the New Zealand Stock Exchange), it shows something of the extent of their assets. The companies involved are:
The properties involved, which include 22 hectares of land, are:
In our commentary on the July 1995 decisions we reported that Hind Hotels International Ltd, then described as a Singaporean public company controlled by the Jhunjhnuwala family of Singapore, gained approval to acquire Florencia Properties Ltd, a wholly owned subsidiary of the Skellerup Group Ltd for $15,100,000. Florencia owned one property in Auckland and one in Christchurch from which Skellerups undertook manufacturing operations, which they were to lease back. "Hind Hotels views the acquisition as a natural extension to its investment property portfolio in New Zealand." According to the Press (25/1/96, "Offices planned", p.20), Hind owns "more than $90 million in property in New Zealand". In May 1992 we reported that the Commission approved UK company, Chapman Properties Number One Company Ltd ("owned by NZIB Investments Ltd which is acting for a syndicate of creditor banks") buying an office complex in Great South Road, Penrose, known as Central Office Park, from Central Office Park Ltd (under statutory management) for "approximately" $38 million. Central Office Park Ltd was owned by the Aurora Group, from which "the applicant [Chapman Properties] will acquire certain other assets." By June this had been sold on to Hind Hotels International Ltd (major shareholders C.L., S.S. and L.N. Jhunjhnuwala) of Singapore at the same price. New Zealand Forestry Group begins selling further blocks of land in Wanganui I-Chou Lien and I-Ting Lien, and Yi-Chin Chen and Yang Chen, all of Taiwan, have approval to acquire 17 and 25 hectare blocks of land, respectively, for $88,560 and $131,760, at No.3 Line and Kaukatea Valley Road, Wanganui, from New Zealand Forestry Group Ltd (NZFG) of Aotearoa for forestry development. They are members of the Okoia Forest Owners Association which "has entered into an arrangement with New Zealand Forestry Group to develop approximately 303 hectares of afforested land near Wanganui [including these blocks]…each member of the Association has entered into a Management Agreement with NZFG, the current owners of the property whereby NZFG is appointed as the manager of the forest and the timber which is to be ultimately marketed once the forest reaches maturity. NZFG will supervise all operations on the property and will be responsible for organising contractors for any work required to be carried out, as well as monitoring all factors pertaining to production from the forestry operation. The management costs associated with the forestry operation will be financed through contributions from the Association members. In addition, pursuant to the terms of the Management Agreement over the next 25 years, members of the Association will be obligated to pay to NZFG all costs associated with managing the forest in accordance with high standards of silviculture and forestry management principles which NZFG has undertaken to-date." MacLab of Australia buys Marlborough Sounds land for mussel farming MacLab (NZ) Ltd owned by J.M. and W.R. Broadbent of Australia has approval to acquire 103 hectares of land at Hallam Cove, French Pass, Marlborough Sounds from Nelson Pine Industries Ltd, owned by Sumitomo Forestry Company Ltd of Japan, for $281,250. MacLab grows and processes mussels for "health products and dietary supplement purposes", and has a factory in Nelson for this purpose. It intends to use part of the Hallam Cove land for "managing its supply and purchase of mussels from the Marlborough Sounds". It will "develop the land by constructing a warehouse and a wharf at the property to service its growing fleet of vessels used to conduct mussel harvesting", giving it a "guaranteed increased supply of mussels". Two-thirds of the land is in pinus radiata forest, which MacLab will eventually mill. L& M Mining buys land for Waikaka mining project near Gore in Southland L & M Mining Ltd, which is owned 33.34% by Kwok Wai Chiu of Hong Kong, 33.33% by Werner Muller of Switzerland, and 33.33% by Geoff London of the U.K. has approval to acquire 33 hectares of land at Waikaka Road, near Gore, Southland for a suppressed amount. "L&M Mining intends to establish mining operations on the property", which is "integral" to the "Waikaka project being undertaken by L & M Mining on adjoining land". In September 1998, L & M sought consent from the Southland District Council to mine for gold on 59 hectares at Freshford, 45 km north of Gore. The land had a listed resource of 190,000 ounces of gold, but L & M said the amount that could be extracted was less than half that (Press, 22/9/98, "Southland gold mine", p.29). It hopes to get consent early in 2000, and to start mining in October 2000. The project includes diverting the Waikaka Stream, a favourite trout fishing river, from the area of the mine, but it has the support of the Fish and Game Council subject to a number of conditions. The mine will operate 24 hours a day, seven days a week. L & M has mined in Bolivia as well as Nokomai, northern Southland, and Glenore, near Milton (Canterbury Business Monthly, December 1999, "Gold mine planned near Gore"). More land for Martha Mine, Waihi Waihi Gold Company Nominees Ltd has approval to acquire 0.1 hectares of land at 2 Brickfield Road, Waihi, Coromandel for $114,000 from G. and B. Warren to extend the Martha Mine. Waihi Gold is owned 67.06% by Normandy Mining Ltd, listed in Australia, and 32.94% by AUAG Resources Limited. However the OIC gives the AUAG ownership as 17.05% Aotearoa, 15.11% Australia, 0.65% U.K., 0.07% France, and 0.06% U.S. This differs from the breakdown given in the previous month when the last such land purchase was made, which showed AUAG as being owned 50/50 in Australia and Aotearoa. "The company is proceeding with an extension to the Martha Mine that will have the effect of extending the life of the mine for about an additional seven years beyond the current estimated life of the mine of 1999. This extension involves enabling access to be obtained to ore below the level of the currently licensed pit. To reach this ore it is necessary to bench back (or extend) the perimeter of the existing pit, and the additional land is required for this, and to provide a sufficient buffer between the extended mine and surrounding residential uses. Previous consents have been granted by the Commission for the acquisition of such land. The land the subject of this application is directly adjacent to the extended Martha Hill mine licence area, and will be required as a buffer for the extended project." Yates buys out lease on Makarewa peat factory land Yates New Zealand Ltd, owned by Arthur Yates and Co. Ltd of Australia, has approval to acquire five hectares of land at Collinson Road, North Makarewa, near Invercargill, Southland, for $185,625 from G. and A. Colban. "Yates currently operates a peat factory on the land … under a lease agreement. Yates intends to acquire the freehold interest in order to better rationalise its business activities and gain direct control over its factory site and to secure its long term tenure of the land and continuation of the peat mining in the area." Singapore resident buys Te Anau land for holiday home – whoops, for tourists Utah Investments Ltd, owned by Lai Kiat Yeong of Singapore, has approval to acquire 26 hectares of land four kilometres north of Te Anau on the Te Anau-Milford Highway, for $562,500 as a "lifestyle property". The property is being purchased for "investment purposes" and a "high quality residence" will be erected "on each of the two parcels of land". They will be used "from time to time as holiday homes for his family rather than as a residence". The inconsistency between this and the "investment" purpose must have struck even the OIC, because it further notes that "The Commission was initially advised that when Mr Lai is not using the homes they are likely to be used by family friends, guests and business associates. In subsequent correspondence an additional statement was made that the homes will be let to tourists in the expectation there will be a significant demand for rental properties in the region." This is significant, because the OIC’s criteria for accepting the purchase of "lifestyle property" (see http://www.oic.govt.nz/invest/property.htm) permit it only when the applicant
In general, purchase of lifestyle blocks simply as family holiday homes for non-residents are not approved. Some "coaching" evidently went on to get Mr Lai to write those magic words implying he would make money from tourists. Even then it stretches to meet the criteria. Subdivision land to Fletcher’s in Browns Bay, Auckland, and Taradale, Napier Fletcher Residential, a subsidiary of Fletcher Challenge Ltd, has approval to acquire 1.4 hectares of land off Helvetia Drive, Browns Bay, Auckland, for $2,250,000 from BBG Holdings Ltd of Aotearoa; and 3.2 hectares of land at Guppy Road, Taradale, Napier, Hawkes Bay for $650,000 from E.B. Laxon. Fletcher Challenge is only 37% owned in Aotearoa: the rest, according to the OIC includes 39% in U.S.A., 10% Australia, 9% U.K., and 5% Singapore. Fletcher Residential intends to construct 20 houses on the Browns Bay land. Its "is viewed as an expansion of the residential subdivision and building business of Fletcher Residential on Auckland’s North Shore". Fletcher’s are "concentrating building development in the Albany part of the Auckland market". It will develop a residential subdivision on the Taradale land, which "will be a continuation of its existing subdivision on a parcel of adjoining land". For previous purchases of land for subdivision, and why Fletcher Challenge now has to obtain approval for its purchases, see our commentary on the August 1999 decisions. King Country 3,616 ha. Puketiti Station sold to U.S. buyer In a decision with a number of unusual parts suppressed, The Ingleby Company Ltd, the name of whose owner in the U.S.A. has been suppressed, has approval to acquire the 3,616 hectare Puketiti Station, Haku Road, near Piopio, King Country, Waikato, for $8,500,000. Apart from the usual legalistic incantation about the applicant having business experience, demonstrating financial commitment, and being of "good character", the only part of the rationale not suppressed by the OIC is as follows: "Puketiti Station is described as a large back country station which has been on the market for some years. The current use of the property is mixed cattle and sheep farming carrying about 25,600 stock units over a grazeable area of approximately 2,700 hectares." However the OIC also categorises the sale as involving forestry and deer farming. The 17th longest cave in Aotearoa, the Thunderer Cave (4,726 metres), is in the Puketiti area. It, along with other caves in the area, are accessed through the Station (see http://www.massey.ac.nz/~SGlasgow/nzss/longcave.htm and http://www.massey.ac.nz/~SGlasgow/huts.htm). Further land near Moeraki, Otago, sold to U.S. company The Austin Company Ltd, owned by Joel (49%), Ron (26%), and Isabel Ross (25%) Ogden of the U.S.A., has approval to acquire six hectares of land at 115 Lighthouse Road, Moeraki, Otago from Noel and Noeline Parker for $190,000. In January 1999, the company was given approval to acquire the adjoining 403 hectare Lighthouse Hills farm. The property had been "used predominantly for farming of sheep and beef, but a backpackers business has been established to supplement the farming operation." The new owners said they would look at extending the accommodation and establishing a fresh seafood restaurant on the property, and market the facilities in the U.S.A. The current purchase is "to provide a reliable water supply from springs in the Parker property, to provided domestic and stock water" to the Lighthouse Hills farm. "It will also provide an additional dwelling, which can be used by The Austin Company for staff housing and general accommodation use". |
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