The announcement follows a decision by the High Court last week to place a temporary halt on Cavalier Wool Holdings' proposed purchase of WSI to allow an appeal on the decision to be heard.
Last month, the Commerce Commission granted authorisation to Cavalier Wool Holdings (CWH) to make an offer for WSI's wool-scouring assets. The company had made a $40 million conditional offer.
The commission's decision was appealed by New Zealand's largest carpet manufacturer, Godfrey Hirst, which said it struggled to see how a regulatory body could allow for a monopoly in a key industry, which would have implications not only for direct users of New Zealand scouring but also for the wool growers, manufacturers and end users of products which use New Zealand coarse wool.
The High Court has granted a stay of the determination pending the hearing of the appeal, scheduled for August 22.
Wool Equities chairman Cliff Heath confirmed the company had secured significant funding to enable it to put in an offer for WSI on behalf of New Zealand wool growers.
"We are very close to announcing details of how growers can take an ownership stake in this opportunity." The High Court decision was "music to Wool Equities Ltd ears". Common sense had prevailed as the Commerce Commission decision was not in the best interests of farmers, Mr Heath said.
'If Cavalier is allowed to purchase WSI, we would be left with a monopoly. With wool prices stronger than they have been in over 20 years, enabling one entity to dictate terms would be foolhardy and detrimental to the New Zealand economy.
"Farmers should own critical wool assets such as WSI and we are all doing all that we can to assist that to happen," he said.
Wool Equities was established for strong wool growers out of the disestablishment of the New Zealand Wool Board in 2003. It has 7800 farmer shareholders.
CWH was pleased the appeal could be heard so soon, Cavalier Corporation managing director Wayne Chung said.
Notwithstanding the stay, CWH might continue negotiations provided any agreement with WSI was conditional on the resolution of the appeal and an authorisation being in place by settlement, Mr Chung said.
