04/12/2019 | News release | Distributed by Public on 04/11/2019 23:08
12 April 2019
The Overseas Investment Office (OIO) has received an application from Hongkong Jingang Trade Holding Co. Limited for consent to acquire Westland Co-operative Dairy Company Limited.
The investment requires consent because it involves sensitive land (4.8173 hectares of residential land) and significant business assets (assets worth over $100m).
Hongkong Jingang Trade Holding Co Ltd is a subsidiary of Inner Mongolia Yili Industrial Group Co. Ltd. Yili is a dairy producer based in China and listed on the Shanghai Stock Exchange. Yili previously acquired Oceania Dairy Ltd in 2013 and progressed construction of a milk processing plant at Glenavy in South Canterbury.
The Westland investment will be assessed under the residential land consent pathways. Among other things, the pathways permit overseas persons to acquire residential land for non-residential purposes (eg offices) or for residential purposes in support of a business (eg worker accommodation) if certain criteria are met. The investment will also be assessed against the investor test criteria (eg business experience and acumen, and good character).
The benefit to New Zealand criteria does not apply to this application because the only sensitive land involved is residential.
The OIO is currently assessing the application, and is not able to comment further until a decision is made.