Cavalier wool scour business to merge
22 October 2014
Cavalier Corporation's share in the Cavalier Wool Scour business will reduce with the merging of its operations with New Zealand Wool Servcies International Ltd.
Cavalier Wool Holdings Limited (CWH), an associate wool-scouring company in which Cavalier Corporation Limited has a 50% shareholding, has entered into a transaction with New Zealand Wool Services International Limited (owned by Melbourne-based Lempriere Australia Pty Limited) to purchase its New Zealand wool scouring operations in part consideration for the issue of shares by CWH.
The share issue will result in Cavalier Corporation's shareholding in the enlarged CWH reducing to 27.5%. The transaction, which is conditional upon Commerce Commission approval, will bring about further rationalisation of the New Zealand wool scouring industry.
The Directors of CWH believe it is in the best interests of the company and New Zealand wool scouring to further consolidate the industry, thereby maintaining New Zealand’s international competitiveness and retaining scouring onshore.
Managing Director and CEO
For and on behalf of the Board of directors