Aussie wool merchant Lempriere bids for NZWSI takeover

31 Oct '12

2 min read

In its formal offer for takeover of New Zealand Wool Services International (WSI), Australian wool merchant Lempriere Holdings has hinted that it would not sell the NZ firm’s scouring assets to its competitor Cavalier Wool Holdings.

In the official offer document, WSI Holdings, a partner firm of Melbourne based Lempriere Holdings, made an offer of 45 cents per share to WSI shareholders, which would take the total sum to US$ 31 million.

Presently, WSI Holdings already holds 75 percent shares of WSI that it acquired through lock-up deals with WSI senior managers and receivers of two Allan Hubbard-associate firms, who helped it secure 11 percent and 64 percent stake, respectively. However, the takeover proposal is subject to the WSI Holding obtaining Overseas Investment Office’s approval for the deal.

Last year, Cavalier Wool Holdings made an offer to takeover the scouring assets of WSI for US$ 40 million. If the bid would have been received well and approved by the Commerce Commission, it would have earned Cavalier an official monopoly over NZ wool scouring industry.

In its offer document, WSI Holdings said it looks forward to carry out a strategic review of WSI and its subsidiaries, but also hinted that in spite of knowing about Cavalier Wool Holdings Limited’s interest in acquiring WSI’s wool scouring assets, it does not intend to sell the same.

Fibre2fashion News Desk - India