Wool sector close to sale tidy-up

Another step in the restructuring of the wool sector has been announced.

Wool Equities subsidiary Canesis Network is planning to sell its Wool Interiors division to the Wool Research Organisation of New Zealand (Wronz) for $1.7 million.

NZAX-listed Wool Equities owns 74.9 per cent of Canesis, with Wronz holding the balance.

The deal is due to be completed next month.

Wool Interiors holds the right to the Wools of New Zealand brand.

Wool Equities chief executive Mark O'Grady said yesterday the question of what to do with Wool Interiors had been considered for some time.

Wool Interiors brought together the old Wool Board's brand promotion activities with some Canesis technologies. Canesis' ownership of Wool Interiors was always intended to be transitional.

O'Grady said Wronz - an incorporated society and research funder involving members of the wool industry - saw Wool Interiors as an important sector asset.

Canesis, meanwhile, is currently being eyed for possible purchase by AgResearch.