Wool Equities hopes to sell Keratec

Woolgrower owned Wool Equities hopes to sell its Keratec subsidiary for US$800,000 to its United States partner, Keraplast.

Wool Equities had entered a non-binding letter of intent with Keraplast for the sale.

The sale was due to be completed in June or July, chairman Andy Pearce said.

Wool Equities was also considering a return of capital through a share buy-back if the sale proceeded.

The company expected to hold cash of between US$3.5 million and US$4 million following the Keratec sale.