New wool co-op revises prospectus

Wool Partners chairman Jeff Grant. Photo / Supplied

The farming leader heading a new grower-owned wool co-operative says he hopes that changes to Wool Partners Co-operative's prospectus will persuade farmers to lift their investment to the threshold required to get the venture under way.

The two main concerns raised were over financial payments and the release of more financial detail, said Wool Partners chairman Jeff Grant.

These matters had been addressed in an amended prospectus being sent to farmers over the next couple of days, with new financial projections to 2012, he said.

"We think that will bring forward more members, especially the farms where estates, family corporates and trusts such as Maori incorporations asked for longer periods in which to make their payments."

Sheep farmers have been asked to buy shares in Wool Partners at a cost of $1 a kg of annual production - paid over time - but so far subscriptions for only 35 million $1 shares have been received.

The original November 30 target of 65 million shares represented about half the nation's greasy wool clip of 130 million kg.

The co-operative last week announced a second extension of its offer to February 16, but Grant said directors had now retained a right to go ahead at a lesser number of shares, but not less than 55 million.

- NZPA