Wool Equities to bid for Wool Services
Wool Equities says it has funding to buy Wool Services International, on the market following the receivership of two Allan Hubbard-linked companies.
Farmer-owned Wool Equities has emerged as a bidder for New Zealand Wool Services International (WSI), after a court ordered a temporary halt on an offer from Cavalier Wool Holdings.
NZAX-listed Wool Equities said today it had secured “significant” funding enabling it to put in an offer for WSI and was close to announcing details of its bid.
Cavalier has Commerce Commission clearance to acquire WSI, so it can merge both scouring services, creating a monopoly.
But on Friday the High Court granted a temporary halt to Cavalier’s offer pending an appeal by carpet maker Godfrey Hirst, which is opposing the deal.
Wool Equities chairman Cliff Heath described the temporary halt as “music to Wool Equities ears.”
Mr Heath said allowing Cavalier to purchase WSI isn't in the best interest of growers.
"With wool prices stronger than they have been in over 20 years, enabling one entity to dictate terms would be foolhardy and detrimental to the New Zealand economy," he said.
"Farmers should own critical wool assets such as WSI and we are all doing all that we can to assist that to happen."
WSI is on the market following the receivership of its two largest shareholders, Plum Duff and Woolpak Holdings.
Nbr staff
Mon, 11 Jul 2011
Mon, 11 Jul 2011
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Wool Equities to bid for Wool Services
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