The Overseas Investment Office has approved the deal for two European pension funds to buy a majority stake in an Otago Forestry company, but the value of the deal will be kept secret.
Earlier this month, the Netherlands’ Stichting Pensioenfonds ABP (ABP) and the United Kingdom’s Pension Protection Fund (PPF) announced a deal to buy a majority stake in Wineta Forest Products.
The two funds bought Sinotrans New Zealand’s 62% shareholding.
Wenita, based in Mosgiel, manages 30,000ha of forestry area across Otago and employs 14 staff and about 120 contractors.
The two funds, along with Australian-based New Forests Asset Management Pty Limited, which has had a stake since 2018, bought into Wenita Forest Products Ltd using a newly formed holding company, Taieri Forests Ltd.
In its decision, the OIO said the asset value was withheld under the Official Information Act 1982.
According to the Act, there are multiple reasons the value could be withheld, such as avoiding prejudice to the substantial economic interests of New Zealand or protecting information where it could disclose a trade secret.
Conditions for the OIO approval included that the new business maintain existing arrangements for protected area management plans and walking access and maintain log supply arrangements.
The decision said Minister of Finance Grant Robertson had determined the investment was not contrary to New Zealand’s national interest.
