By David Bruce
An Italian family-owned textile company has been given approval to take full ownership of two high-country merino stations in the Waitaki Valley, in a $4.8 million deal.
Reda Holding SpA already has two-thirds ownership of the 6731ha Otamatapaio Station and the 9935ha Rugged Ridges station, leasehold properties at Otematata and Lake Benmore.
The Overseas Investment Office (OIO) has given approval for it to buy the remaining third in both properties from Australian-owned family company Lempriere (NZ) Ltd.
Both properties supply merino fine wool to Reda Holding, a textile company owned by the Botto Poala family and based in Valle Mosso, Italy.
Merino fleeces from the two properties are manufactured into pure wool worsted fabrics, used by high-end garment manufacturers including Armani, Hugo Boss and Ermenegildo Zegna.
Taking 100% ownership of the two properties would enable Reda Holding to continue to control the chain of production, the OIO said in its decision.
Reda Holding said the ability to control quality through all stages of production and product traceability was fundamental to its business strategy.
The company was founded in 1876 by Giuseppe Botto Poala and now produces fine fibres for both knitwear and weaving.
It manufactures all of its products in its plants in the Biella region of Italy.
Reda Holding first bought an interest in Otamatapaio Station in 1993 and in Rugged Ridges in 2006. It also has an interest in Glenrock Station, at Tekapo.