Grower response encourages Wool Partners Co-operative

09 Nov '10

3 min read

Wool Partners Co-operative Limited is delighted by the early response from growers to the launch of its prospectus and investment statement to raise $65 million for the creation of a new model for the strong wool industry – one that replicates the best of the co-operative models that have achieved success for merino, diary and kiwifruit suppliers.

Wool Partners Co-operative chairman Jeff Grant says the mood of growers attending the roadshow presentations has been very positive and they welcome this opportunity to improve their industry.

“As farmers we finally have the chance to take control of our industry and create a co-operative which will work for us. This is a once in a lifetime opportunity to be masters of our own destiny. We'll need to reach into our pockets – but it will be worth it and we absolutely must do it”, says Dan Jex-Blake, Gisborne farmer.

So far roadshow presentations have been made in Northland, Southland, South Otago, Nelson, West Coast, Hawkes Bay and on the East Coast of the North Island. In the coming week the two roadshow teams will be at venues in Waikato, King Country, Wairarapa, South Canterbury and North Otago.

Mr Grant says there have been a range of interesting questions from growers. “To assist all growers in their decision making we have published answers to a range of questions about the Wool Partners Co-operative offer on our website – www.woolpartners.com”

“Perhaps the most common questions relate to payment for shares and the use of the funds raised. The requirement is for growers to subscribe $1.00 for every kilogram of greasy wool produced, payable in five equal payments of $0.20 cents. The first $0.20 is payable with the application and must be received by 30 November 2010. Importantly, growers need to know that their cheque will only be banked if the offer is successful.

“Four further capital instalments of $0.20 cents each are due annually from May 2011. However, the directors may chose to defer the final three payments, depending on the capital requirements of the co-operative. These funds will be needed at some stage to undertake further industry consolidation but before any material transactions take place, the approval of growers will be sought.”

“The first two payments will be used to purchase Wools of New Zealand and its brands, the wool exporter Bloch and Behrens and other selected assets from WPI for a total of $17.74 million.

Wool Partners Co-operative Limited