Year’s top 3 foreign trades worth $5.6b

Aussies, Japanese and Canadians had role in leading deals for 2023

Shares in an Australasian electricity meter business, a Japanese bank increasing its holding and a telco deal by Canadians were some of the top foreign trades of the year, those first three alone worth $5.6 billion.

KPMG published the top 10 deals approved by Toitu¯ Te Whenua Land Information New Zealand from January to August.

It monitors foreign direct investment, collecting data dating back to 2013.

Which countries are most active, what sectors are they buying into and what prices are they paying?

The purchase price or asset value of some deals is undisclosed after a law change.

1. Half share of Vector business to Queenslanders: $2.5b

The Overseas Investment Office put a $2.5b figure on the “enterprise value”. The sale netted NZX-listed Vector Group $1.75b when it sold half of its smart-meter management business to the state government-owned Queensland Investment Corporation. A QIC-Vector joint venture, Vector Metering, was formed to run the smart-meter business, which manages 2.3 million meters across Australia and NZ.

Approval was granted on June 2. Vector Group chief executive Simon Mackenzie said the proceeds would be used to pay down the lines company’s debt, which stood at $3.41b at the end of December.

2. Japan’s SBI Shinsei Bank boosts holding: $1.65b

This $1.65b deal was by Japan’s stock exchange-listed entity SBI Shinsei Bank and was a share deal. Essentially, it was a rejigging done in Japan, but because it involved NZ assets, local clearance was needed here.

That would not result in any change to the day-to-day operation and control of the local finance firm UDC, the OIO noted.

Shinsei wholly owns UDC Finance, which it bought in 2020.

The bank, 60 per cent owned by Japanese interests, previously owned 39.44 per cent of the shares in Shinsei, which carry just over half of the voting rights. It was allowed to increase its existing shareholding to a maximum of about 76.69 per cent, which will carry approximately 77 per cent of the voting rights.

Approval was granted on May 2, 2023.

3. Canadians buy Australianowned cellphone assets: $1.05b

2degrees, majority owned by Australians, sold cell tower assets to Connexa — the management company formed when Spark sold 70 per cent of its cell tower network to the Ontario Teachers’ Pension Plan in June last year.

The value of the deal was put at $1.05b and approval was granted on June 7.

Consent was granted to Connexa to buy all passive mobile network infrastructure assets in cellular mobile networks.

4. American software giant in global deal: $390m

Barcelona Merger Sub 2 Inc (86 per cent American) won consent to buy assets globally valued at US$61b from fellow US business VMware Inc.

KPMG listed the value of assets involved in this at $390m,

Barcelona is a wholly owned subsidiary of Broadcom, a multinational technology company that designs and develops software. VMware develops, manufactures, and sells IT software and related services.

“This is a global transaction. The New Zealand subsidiary of the target operates contracts with customers and distributors in New Zealand and employs the target’s employees in New Zealand. This is part of a threestep multinational merger agreement under which Broadcom will acquire all the outstanding shares of the vendor,” the OIO noted.

5. Swiss get Wellington properties via merger deal: $360m

UBS Group AG (20.6 per cent Swiss) won consent to indirectly buy Wellington commercial properties from Credit Suisse Group AG (9.9 per cent Saudi Arabian).

On May 16, the OIO said UBS and Credit Suisse were proposing to merge after a severe deterioration of Credit Suisse’s financial situation.

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So UBS would make an indirect acquisition of a freehold interest in nonsensitive commercial properties in Wellington where the total value exceeded $100m.

6. Americans buy 26 per cent of payments, lending business: $332m KKR Clarendon Holdings L.P. (51 per cent American) won consent to buy 26 per cent of the shares in Australasian payments and loans business Latitude Group from KVD Singapore Pte. (45 per cent American).

Latitude is an Australian-based digital payment and lending business operating here. Its services include loans, credit cards and insurance, the OIO noted.

The Americans already owned an indirect stake but the deal allowed them to buy shares and was approved on June 7.

7. Land for new Auckland innovation hub: $275m

NZX listed Fisher & Paykel Healthcare is one-third NZ-owned but the rest is in overseas hands so it needed consent to buy sensitive land at Karaka.

Karaka Meadows sold 300-328,

350, 370 and 458 Karaka Rd. One title was owned by Van Den Brink Meadows. Part was previously owned by Karaka Road Estate, whose directors include tomato supplier Brett Wharfe of NZ Hothouse.

Companies Office records show Karaka Meadows was incorporated in

2021 and has registered offices at a Nelson law firm Royds Legal.

Clearance was granted on April 23 and involved the Finance and Land Information Ministers.

8. Australians buy Taira¯whiti, Wairoa electricity assets: $260m

First Sunrise Bidco (55.5 per cent Australian), owned by First Sentier Funds, bought New Zealand-owned Eastland Network owned by Trust Taira¯whiti, the electricity distribution company for the Taira¯whiti and Wairoa regions.

Trust Taira¯whiti supported Eastland Group’s recommendation for the network sale to release capital for further investment into the economic development of the region.

The Australians invest in economic infrastructure assets like waste management, energy, water and chemical storage facilities as well as transport and telecommunication networks in OECD countries.

9. Germans buy big Wellington landlord: $240m

Bowen Investment Partnership and CC Aeolus Ptd (55 per cent German) bought 40 and 44 Bowen St in Wellington from NZX-listed Precinct Properties.

The buyers were new entities formed to hold the interests.

Bowen Investment Limited Partnership is 80 per cent owned by CC Aeolus Pte and 20 per cent held by PPNZ Bowen Investment, part of the Precinct Properties business, the OIO noted.

No price was declared but KPMG put the value at $240m. Consent was granted on March 27.

10. British buy management of state assets from Morrison & Co: $203m

IIP(NZ) which is 93 per cent Britishowned, was cleared to buy Crown assets from Morrison & Co: Contracts for the country’s only maximum security prison, 11 state schools and a North Shore university student accommodation campus.

London Stock Exchange-listed International Public Partnerships bought funding services to Auckland Prison at Paremoremo, five Auckland schools, one in Hamilton, four in Christchurch, one in Queenstown as well as AUT’s North Campus student accommodation on the North Shore.

The 11 education assets involved, according to the report, are Hobsonville Point Primary School, Hobsonville Point Secondary School, Ormiston Junior College, Te Uho o te Nikau at Flat Bush, northwest Auckland’s Matua Ngaru Primary School, Hamilton’s Te Ao Marama School, Shirley Boys’ High School and adjoining Avonside Girls’ High School in Christchurch, Haeata Community Campus in Christchurch, Rolleston College in Canterbury and Wakatipu High School in Queenstown.