A 75% stake in carpet wool exporter New Zealand Wool Services
International has been locked up in a takeover bid by
Australian company Lempriere Holdings Pty Ltd of Melbourne
for $23.2 million.
There is an additional $7.8 million on offer for the
outstanding 25% of shares it does not own.
Wool Services, which was established out of the former New
Zealand Wool Board and listed in late 1997, has been under a
cloud for some time after the Commerce Commission granted
authorisation last year to Cavalier Wool Holdings to make an
offer for its wool scouring assets.
Wool Services later confirmed it was planning to raise
capital in its attempt to buy the 64% of the company owned by
deceased financier Alan Hubbard's Plum Duff and Woolpak
Holdings, which was under the control of receivers.
Listed Wool Services' business model is based on a
woolgrower, to scours - in either the North or South Islands
- to then export carpet wools.
Plum Duff Ltd and Woolpak Holdings Ltd were placed in
receivership in December 2010 and held 64% of Wool Services,
which has been locked up for sale to Lempriere Holdings at
45c per share.
Additionally, a further 11% of Wool Services shares held by
five senior employees and another retiree were locked up for
sale to Lempriere Holdings yesterday.
The two purchases are worth about $23.2 million.
Craigs Investment Partners broker Chris Timms said the
remaining 25% of shares at 45c was valued at about $7.8
Wool Services chairman Derek Kirke told markets yesterday he
was informed by the receivers, then employees, that "lock-up
agreements to sell" had been signed with Lempriere subsidiary
WSI Holdings Pty Ltd to sell their respective 64% and 11%