Wool Co to raise funds to acquire WSI

20 Sep '11

1 min read

A new initiative has been launched by sheep farmers under the newly set up New Zealand Wool Investment Company Limited (Wool Co) to acquire New Zealand Wool Services International Limited (WSI).

Cliff Heath, Chairman of Wool Co, said the company plans to unite sheep farmers and raise a capital of NZD 40 million for the purpose.

He said Wool Co would like to be involved in all wool activities from farm gate to the shop floor. Further, the competition at the scours is important for stability of processing costs charged to farmers, and to safeguard the interests of New Zealand wool industry.

The wool scours owned by WSI are strategic wool assets and they need to be under the control of the farmers, he added.

For raising NZD 40 million, Wool Co has made an offer that is available to 'Eligible Persons' under the Securities Act 1978 and to those persons who fall within section 3(2)(a) of the Securities Act.

Currently, a 64 percent shareholding in WSI is on the market. Post successful fundraising, Wool Co wishes to negotiate an agreement for acquiring this share and taking over the management of WSI.

Fibre2fashion News Desk - India