Hellaby to sell NZ wool services for $6.9m

Hellaby Holdings said today it had agreed to sell its 19.85 per cent shareholding in NZ Wool Services International Ltd (WSI) to Woolpak Holdings for $6.9 million.

Hellaby managing director David Houldsworth said WSI was an excellent company in a key sector of the economy -- wool scouring and exporting -- but the investment no longer fitted with Hellaby's strategic direction.

The sale was consistent with Hellaby's recently announced policy of selling certain non-core assets. The proceeds would further strengthen the group's financial base and provide additional funds for future acquisitions, Mr Houldsworth said.

The 50c per share sale price would yield a $1.3m gain over book value for Hellaby.

Hellaby shares were unchanged on $4.59. They have traded between $4.10 and $6.22 in the last 12 months.

- NZPA