Media release 14th October 2021
Wool Industry Merger Vote
Wools of New Zealand (WNZ) and Primary Wool Co-operative (PWC) shareholders are encouraged to register for a series of online meetings ahead of a vote on the proposed merger of operations between WNZ and Primary Wool Co-operative-owned CP Wool.
Under the proposed merger, the grower-owned export and marketing company WNZ and PWC will remain the shareholding vehicles while a new entity will jointly own the combined trading business of WNZ and CPW.
WNZ and CP Wool directors and staff will discuss the proposal and what it means for farmers at three online meetings before the PWC Annual General Meeting on 4th November and a WNZ special meeting on 5th November. Subject to shareholder support, this will conclude a series of communications with growers over the last 12 months about the strategy and process to merge the operations of both wool companies.
Voting papers will be sent out to shareholders over the coming days.
“Growers have been asking for consolidation and now they will get the chance to have their say. Together, WNZ and CP Wool can deliver the market vision and supply scale required to make a real difference. This merger will give us greater presence in the market and seamless service and logistics to the farmgate. It will also act as a launch-pad for New Zealand to better realise the full potential of wool.
“To date, we have communicated the strategy and why we believe this is a good idea. But these voter meetings will share the detail around the deal structure. It is really important grower shareholders sign-up for a meeting so they can make an informed vote.”
Richard Young, chair of PWC and chair of CP Wool, which is now 100 per cent owned by PWC, urged farmers to register for a meeting.
“It’s vital farmers are fully informed ahead of the vote. This merger needs to happen because it will give us the financial strength that can be deployed to deliver business growth and demand-creation activities for woollen consumer products, setting us up for success.
“The successful execution of the strategy relies on WNZ and CP Wool joining forces — it will create a stronger global business with increased scale and horsepower.
“Ultimately, this merger aims to improve returns for our growers and increase the value of the business and shareholders’ investment.”