Origin's move on Contact stake largest foreign deal this year

Contact Energy's Australian owner has Government consent for the largest foreign deal in New Zealand this year.

The Overseas Investment Office said Origin Energy's move to increase its stake in Contact involved assets worth $5.2 billion, putting the transaction ahead of all others in 2009.

Earlier this year, Contact said it wanted to pay out profits by issuing shares instead of dividends. So Origin has now applied to the Government for clearance because the change means it will increase its stake in Contact.

Origin cited large slices of land involved which are classified as sensitive under the Overseas Investment Act. These power generation plants and assets are at Otara, New Plymouth and in Central Otago.

Two United States financial giants were cleared to do a deal involving assets worth $265 million. Bank of America got consent for a deal with Merrill Lynch over a half-share in Veda NZ, which is jointly owned by the bank and Pacific Equity Partners Fund III, the application said.

Next Capital of Australia got clearance for a deal with the New Zealand shareholders in Vitaco Health Group involving assets worth $203 million. Next already has 72 per cent of Vitaco.



New Zealand-controlled Weiti No 1 Partnership got approval for a $163 million deal with Taiwanese-owned Green & McCahill Holdings and Williams Land Stillwater of New Zealand to buy 862ha of land at 1696 East Coast Rd, Rodney, and 1.6ha of land at 2 Duck Creek Rd, Stillwater.



US interests got approval for a $140 million deal with shareholders in American International Group.

Nuplex Industries (80 per cent New Zealand) got approval for its $132.8 million rights issue which needed to go before the Overseas Investment Office because of foreign ownership. Australian interests were listed as having 15.1 per cent of Nuplex and Americans have 2.1 per cent.

Waterfront Fund (100 per cent New Zealand) was cleared to buy 508ha of Kerikeri land in the Bay of Islands from Williams Capital Holdings No 1. The deal's value was pegged at $30.2 million and the buyer wants to develop 25 lifestyle blocks and increase farming productivity.