Wool Equities scheme of arrangement quashed

A proposed scheme of arrangement that would have resulted in restructuring of Wool Equities is not to proceed.

It had been proposed that Wool Equities split into two separate vehicles -- biotechnology and commercial development of the wool industry.

The aim was to allow capital raising in the biotechnology business while protecting historic New Zealand Wool Board tax losses.

But today Wool Equities chairman Andy Pearce said the Wool Industry Network (WIN) had withdrawn from discussions on a restructured Wool Equities.

Canterbury-based WIN is funded by Meat & Wool New Zealand and New Zealand Trade and Enterprise. Its aim is to revitalise the $1 billion wool industry.

Dr Pearce said WIN chairwoman Sue Sheldon had advised Wool Equities that WIN has elected not to proceed due to a combination of factors.

Those had included minority shareholder agitation, related potential consequences for the timeline, and complexities in accessing the Wool Board residual tax losses.

- NZPA