DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Decision date9 June 2011
Investment

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in a further 33.33% of the shares of Rugged Ridges Limited which owns or controls a leasehold interest in 9935.6926 hectares of land at 2102 Otematata-Kurrow Road, Oamaru.

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in a further 33.33% of the shares of Otamatapaio Station Limited which owns or controls a freehold interest in 6731.6613 hectares of land at 3761 and 4580 Omarama-Otematata Road, Omarama, South Island.

Consideration$4,800,000
ApplicantReda Holding SpA
The Botto Poala Family, Italy (100.0%)
VendorLempriere (NZ) Limited
Lempriere Family, Australia (100.0%)
Background

The Applicant owns and operates a woollen mill situated in Valle Mosso, Italy. Merino fleece from Otamatapaio Station and Rugged Ridges is manufactured into pure wool worsted fabrics, with production exported to high-end garment manufacturers, which include Armani, Hugo Boss, and Ermenegildo Zegna.

The Applicant, which currently owns 66.7% of the shares in Otamatapaio Station Limited and RuggedRidges Limited, is seeking to purchase Lempriere (N.Z) Limited’s 33.3% shareholding in Otamatapaio Station Limited and Rugged Ridges Limited, which owns the land at Otamatapaio Station and Rugged Ridges, respectively. Both properties are primarily operated as merino sheep farms.

The acquisition will enable the Applicant to continue to control the chain of production (from farming the wool to creating fabric from the wool clip). The ability to control quality through all stages of production and product traceability is fundamental to the Applicant’s business strategy.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(b) – Indigenous Vegetation/Fauna

Overseas Investment Regulations 2005
28(e) – Previous investments

More informationPaul Dorrance
Duncan Cotterill (Christchurch)
PO Box 5
CHRISTCHURCH