But WSI chairman Derek Kirke yesterday said the board would not be in a position to fully assess the offer in the short-term because of the number of "significant uncertainties" relating to it.
The proposed offer from Cavalier Wool Holdings was inconsistent with its application to the Commerce Commission for authorisation to make an offer for WSI's scouring assets as it also extended to other assets.
Furthermore, the application was still under consideration by the commission, and a decision was not due until June 10, Mr Kirke said.
There was very limited detail in the offer and a "significant" amount of work would need to be carried out before the board could reasonably advise shareholders as to its implications and possible returns.
The offer had also been received in the midst of a sales process for a 64% shareholding in WSI. "The directors need this sales process to be concluded before being in a position to assess the Cavalier offer, given that the outcome of the share sale process could determine whether shareholder approval for the proposal is an option," he said.
Until the outcome of the CWH application for authorisation was known and the receiver's sales process was concluded, the board was "most reluctant" to spend shareholder resources on evaluating an offer that might not be authorised to proceed.
CWH had offered to buy the business in anticipation of a favourable final determination from the Commerce Commission, Cavalier Corporation managing director Wayne Chung said.
