WSI shareholders rattled by uncertainty
Wool Services International awaits cornerstone shareholder moves.
Uncertainty of shareholding control was the main topic at the NZ Wool Services International meeting today
For the past year the receivers of South Canterbury Finance have been seeking a buyer for the 64% stake held by Allan Hubbard companies, Plum Duff and Woolpak Holdings.
WSI chairman Derek Kirke told shareholders today that it had been a disruptive 12 months even though the company had posted a record performance.
Mr Kirke expressed frustration at the “almost weekly” and “presumptuous” commentaries from potential suitor, Cavalier Wool Holdings, about a pending takeover. Staff had had to endure comments from Cavalier that it would close WSI’s Whakatu wool scour if successful in taking over the assets.
Cavalier had sought Commerce Commission approval to buy the shares and when that was refused it had sought regulatory approval to buy the assets. Rival Godfrey Hirst had lost a High Court challenge but has indicated it will decide on an appeal before Christmas, Mr Kirke said.
Any move to acquire the assets would still require 75% shareholder approval, he said.
“Once the shareholder issues are resolved it’s in the best long term interests of the company to continue as it is today,” Mr Kirke said.
Shareholders approved an increase in directors’ fees collectively from $200,000 to $260,000.
Chris Hutching
Tue, 06 Dec 2011
Tue, 06 Dec 2011
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WSI shareholders rattled by uncertainty
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