Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Wool Equities to de-list from NZAX, trading suspended

Wool Equities to de-list from NZAX, trading suspended

March 10 (BusinessDesk) - Wool Equities, which processes wool for its grower shareholders, will de-list from the small-cap New Zealand Alternative Market, and has suspended share trading.

The company has been negotiating a potential merger with Primary Wool Cooperative, a farmer-owned joint venture with wool broker Elders, and one of the pre-requisites of the talks is for Wool Equities to quit the stock exchange, chairman Clifford Heath said in a statement.

The company decided it would be better to spend listing fee funds on direct communications with its 9,500 shareholders, and with limited trading on the bourse, its value was questionable, he said.

Once it leaves the stock exchange the company will manage its share register internally and offer a platform to allow investors to sell their holdings.

The boards of Wool Equities and Primary Wool Cooperative met last month to discuss the merger, and decided there were enough opportunities to continue talking, Heath said.

Milton, Otago-based Wool Equities operates in the finer end of the wool market for garments, using merino, mid-micron and crossbred lamb’s wool and Palmerston North-based Primary Wool handles all types of wool.

Heath said Wool Equities’ manufacturing plants at Milton and Palmerston North have good forward orders, though cash flow is still tight.

The NXAX-listed shares trade infrequently, last changing hands on March 4 at 2.2 cents apiece. That values the company at $681,000.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>