Nz Wool Services Lists On The Nzax Market

30 April 2004

Nz Wool Services Lists On The Nzax Market

New Zealand¹s largest wool scourer and exporter, New Zealand Wool Services International Ltd, will be quoted on the NZAX Market from Monday 3 May 2004.

Managing Director Michael Dwyer says the listing comes at a positive time when the company has capacity to expand trade further into offshore markets such as China and Europe.

"Listing on the NZAX is a natural progression for the company. It will encourage and improve the ability of new investors and existing shareholders to trade shares in NZ Wool Services," he said.

The company currently has a 50 per cent shareholding in Whakatu Wool Scour Limited in the Hawke¹s Bay, which will increase to 65 per cent when a new scour is commissioned. In addition, NZ Wool Services has 85 per cent ownership of a scour at Kaputone, in Belfast, north of Christchurch. Both scours are jointly owned with Dalewool Ltd.

"Whakatu recently committed in excess of $9 million to upgrade its scouring plant. This project will bring the company¹s North Island plant into line with our South Island scour, making it the most modern, efficient and technologically advanced facility of its type in the world. It is a strategic move that, along with our acquisition last year of a 50 per cent shareholding in wool purchasing company Rural Wool Link Limited, will enable us to considerably develop our capacity to process and export North Island wool," said Mr Dwyer.

The principal business of NZ Wool Services is the acquisition, scouring and export of wool to over 30 countries. By developing innovative procurement systems and employing advanced scouring technology, the company has established itself as one of New Zealand¹s leading wool exporters.

These strategies have supported sophisticated branding initiatives, such as the recently launched Glacial wool product, developed in partnership with Canesis Ltd for the premium end of the international carpet market.

In the financial year to 30 June 2003, NZ Wool Services achieved revenues of $130 million and posted a tax paid return of 11.8 per cent per annum on average shareholders¹ funds.

On 24 April the Company concluded a successful buyback from holders of less than 1,000 shares. The total number of shares on issue is now 70,687,402. Currently the major shareholders in NZ Wool Services are Forresters (New Zealand) Limited, which holds 44.50 per cent, Hellaby Holdings Limited (20.61 per cent) and directors and staff of the company (12.32 per cent). The balance of 22.57 per cent is held by approximately 8,600 other shareholders.

As required by the Takeovers Code, Forresters and Hellaby will be required, within six months, to reduce their shareholding to the same percentage held prior to the share buyback.

NZ Wool Services shares have traded on the Unlisted Securities Market in recent times in a range of 62 cents to 65 cents.

ENDS

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