CDL & CDI ... Another Great Result

[BlackPeter]

well, some court action ..... somewhat out of the blue.

can't recall CDL having to vigorously defend anything before.

https://announcements.nzx.com/detail/379344

LOL - I assume (Winton - the applicant and a direct competitor to CDL) lost the deal and, being a bad looser tries now to reverse the deal by pi$$ing against the leg of the minister and the OIO for approving it.

There is a lot to say about businessmen who try to make business through the courts, but not a lot of it would be good.

Not sure though my money would be on the applicant , but I am sure another good day for the legal profession;

The judicial review action has been taken by the Applicant in relation to a
recent decision relating to CDLL's acquisition of land in Havelock North
which was advised to the market on 21 July and which has settled. The
Applicant is seeking, inter alia, an order setting aside the decision of the
Overseas Investment Office in respect of that approval and / or a declaration
that Ministers erred at law in making their decision to grant consent.

CDI and CDL Land are taking legal advice and will vigorously defend its
position insofar as it relates to the judicial review and the orders sought
by the Applicant. As the matter is now before the High Court, neither CDI nor
CDLL will be making any further comment at this stage.

[Sideshow Bob]

Winton don't have a good track record down this part of the world. Bought a chunk of land in Cromwell near Highlands, and wanted it all rezoned. Locals fought back and zoning didn't get changed.

Also have Northlake in Wanaka, and had a few issues - like turning the tennis courts into a 3 or 4 story hotel, trying to sue the local medical practice, stormwater etc etc etc.

[Scrunch]

https://announcements.nzx.com/detail/379344

LOL - I assume (Winton - the applicant and a direct competitor to CDL) lost the deal and, being a bad looser tries now to reverse the deal by pi$$ing against the leg of the minister and the OIO for approving it.

There is a lot to say about businessmen who try to make business through the courts, but not a lot of it would be good.

Not sure though my money would be on the applicant , but I am sure another good day for the legal profession;

That mirrors my thinking.

Also the fact they are trying to over-turn the deal means that CDL has also got it at an acceptable price because Winton wanted the deal.

[WAIKEN]

I assume CDL got such an outstanding deal that Winton are willing to spend a lot on legal fees to try and wrest it away.

[Sideshow Bob]

I assume CDL got such an outstanding deal that Winton are willing to spend a lot on legal fees to try and wrest it away.

Probably the last 2 months of house price inflation would probably cover it.....

[Southern Lad]

Well spotted Scrunch - makes sense that the December 2020 disclosure relates to the Havelock North land. If so, $840k per hectare and therefore a reasonable deal for CDI. Will keep an eye out for the OIO approval release in due course to confirm.

OIO Decision summary for Havelock North acquisition approval has been released: https://www.linz.govt.nz/overseas-in...1-07/202100016

The purchase price on the land remains confidential, although I think everyone has worked it out from the CDI financial statements disclosures.

The Winton Property challenge could be seen as a wider attack on CDL seeking to effectively limit CDI’s future ability to get OIO approval for land purchases. If CDL has more difficulty buying land, then that’s not good for shareholders.

Given CDI aren’t long term land owners, hard to see how the foreign ownership of NZ land is contrary to NZ’s interests, other than a chunk of the tax paid profit ultimately leaving NZ.

[podg]

Some softening in the share price. All related to management movements? or is something else bubbling?

[clearasmud]

Some softening in the share price. All related to management movements? or is something else bubbling?

Probably the same reason the retirement stocks are out of favour atm ie fear of interest rate increases causing a drop in housing demand.

[LaserEyeKiwi]

The company trades below the market value of its assets (The NTA is not market based) so even if it announced tomorrow it was closing operations after all current assets were developed and sold - the share price shouldn’t be in danger of dropping by a significant amount lower than it already has.

[percy]

Positive update.
http://nzx-prod-s7fsd7f98s.s3-websit...061/360937.pdf