The Overseas Investment Office has given an American cold storage company the clearance to buy Versacold NZ in a $57 million deal that will see the overseas company become the world's biggest in that business.That decision – released by the OIO tod
The Overseas Investment Office has given an American cold storage company the clearance to buy Versacold NZ in a $57 million deal that will see the overseas company become the world’s biggest in that business.
That decision – released by the OIO today as part of its summary of its March activities – is the largest approval given by the OIO so far in 2010, ahead of the nod it gave Amalgamated Holdings to buy Skycity’s cinema business for $42 million.
The OIO has also given the go-ahead for a German business to buy more than 400 hectares of Southland farming land for $11.7 million.
Despite widespread concerns over the Chinese purchase of the Crafar farm assets, the OIO has rubber stamped the application of the Waicola dairy farm in Southland by Germany-based AgrarINVEST.
That company already has a number of dairy farming assets in Australia and New Zealand and beef farming investments in Brazil and has promised the purchase of the two blocks of land was part of its strategy to “invest in agricultural properties that have the potential to improve profitability through further investment and improved management”.
Meanwhile, the Americold purchase of Versacold – which includes almost two hectares of prime warehouse space in the Christchurch suburb of Hornby - is being funded by the company’s recent launch of an IPO which will see it listed on the New York Stock Exchange.
As part of the American IPO, launched earlier this month, the company is offering 43 million common shares, for between $14 and $16 each.
Americold - which has been in business since 1931 - said its plans to buy 100% of Versacold NZ will make it the “largest owner and operator of temperature-controlled warehouses in the United States and in the world”.
According to the decision summary, its large size would allow it to offer its warehouse tenants a “broad-based portfolio of strategically located temperature-controlled warehouses and related services”, enabling tenants to reduce costs.
