Wool Partners amends terms of raising capital

06 Jan '11

3 min read

In response to feedback from growers, Wool Partners Co-operative Limited is amending the terms of its capital raising and extending the closing date until 16 February 2011.

Wool Partners Co-operative Chairman Jeff Grant says there is determined support for a grower-owned co-operative in the strong wool industry.

“With that ongoing support and subscriptions for 35 million $1 shares already received we would be remiss in not taking this opportunity to deliver what most growers clearly want. With the active support of those who have already subscribed, we are confident that the co-operative can be launched.”

“For far too long others in this industry have delivered returns to their own investors and shareholders at the expense of growers. Not surprisingly, these interests are now actively campaigning to maintain their position.

“Most importantly, the co-operative is built on a solid base and proven performance. Very good progress has been made by the foundation companies over the past two years, creating a stronger presence in global markets through high-profile brands,successful marketing programmes and partnerships with major manufacturers and retail groups.

“The foundation companies Wool Partners Co-operative will acquire have the capability to continue making substantial progress, for the benefit of New Zealand strong wool growers.”

The key change to the terms of the offer will ease the payment growers will be required to make this year.

Growers will be able to subscribe for shares with a single payment of 20 cents a kilogram of greasy wool this year, followed by four annual payments of 20 cents a kilogram from 2012.Further, there is an option for this year's subscription instalment to be deducted from wool receipts in the period 1 March to 31 May.

The extension of the offer until 5pm on 16 February 2011 has resulted in several consequential amendments. Wool Partners Co-operative will now begin operations on 1 April 2011 and will complete the purchase of selected operating assets from Wool Partners International on that date, including Wools of New Zealand and its brands. Payment terms have been renegotiated in line with the expected inflow of subscriptions.

The prospective financial information has been updated to include financial statements for the three months to 30 June 2011 and for the financial year to 30 June 2012. Indicative financial information for the past operating performance of Wool Partners International has also been provided to meet the requests of growers. Mr Grant cautioned that this was not directly applicable to the future operations of Wool Partners Co-operative as there would be substantial differences in the business structure of the co-operative and the assets it intends to employ.

Further amendments detail:
• The terms, and shareholder approvals required, to exercise the option to purchase the business of NZ Wool Handlers.