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


Wool Co-Op Will Never Get Across The Line

Research & Results Indicate Wool Co-Op Will Never Get Across The Line

Wool Partners Co-operative claims that it has $35 million investment support, which verifies the independent research findings that this float will fail, in spite of the optimism of its chairman Jeff Grant.

The $35 million commitment represents only 27 percent of the strong wool clip, which matches closely the results from the independent Horizon research, which was commissioned by the Wool Exporters Council.

The research shows that 70 percent of woolgrowers have not, and do not intend to, invest in the $65 million capital raising.

The Wool Exporters’ executive manager, Nick Nicholson said gaining a commitment for only $35 million and indicating that a lower level of subscription of $55 million, must seriously question the on-going viability of Wool Partners Co-operative.

“The prospectus makes a big point that 50 percent of the clip and $65 million was a minimum for Wool Partners Co-operative to proceed,” Mr Nicholson said.

“It’s the basis of their financial forecasts, so if they are going to accept a lower level of subscription, how are they going to finance their business?

“This means they will have no mandate and no majority of strong wool growers backing them. If I was an investor it would scare the life out of me and I would be asking for my cheque back right now.”

Mr Nicholson said the survey by Horizon Research conducted between December 22 and December 30 involved more than 600 respondents, and had been shown to be remarkably robust and accurate.

“Jeff Grant says they have $35 million, which is about 27 percent of the strong wool clip. Take away Landcorp and a few of the other big incorporations and it puts their commitment down at around 20 to 22 percent.

“Back in October Wool Partners International claimed to handle 40 percent of the strong wool clip, which seems to indicate even their own clients are deserting them at a time when they needed to pick up new business and not lose it.”

Mr Nicholson took exception to the comments from Mr Grant that the exporters and private merchants had “undermined” the capital raising and had been “lobbying” wool growers.

“We have only dealt in facts and asked a few hard questions. Clearly they don’t like the scrutiny. The Horizon research said growers were:

• concerned at the lack of information in the prospectus such as a balance sheet
• worried about $24 million of bank debt
• wanted details of how the businesses being acquired have performed in recent times
• keen to know how assets being acquired from Wool Partners International have been valued.

Another area of concern from the qualitative part of the Horizon poll was the commonality of the management and directors between Wool Partners International, who are selling the assets and Wool Partners Co-operative, who are buying them.

Mr Nicholson said the extensions to the float must have blown the Wool Partners Co-operative float budgets to smithereens, meaning they are going to need more than they originally projected, not less as they now seem to propose.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>