Growers get offer of shares

By PHILIPPA STEVENSON

The Wool Board took a further step towards its demise with a mail-out on Friday to 17,500 wool growers inviting them to register for an interest in its assets.

Legislation restructuring the wool industry along the lines wool growers backed in a referendum eight months ago was introduced to Parliament last month.

Under the Wool Industry Restructuring Bill, growers will get shares and redeemable preference shares in the transitional Wool Disestablishment Company, known as DisCo, based on average sheep numbers over three years to last year.

Wool Board general manager, policy, Roger Buchanan, said every wool grower with 250 or more sheep was being invited to register their entitlement to the asset distribution.

"Those in the business of sheep farming who farmed 250 or more sheep as at June 30, 2002, and were entitled to the income from the wool of those sheep are eligible," he said.

The shares will be exchanged for shares in two grower-owned companies - Wool Equities, a company for non-merino growers, and Merino Grower Investments for merino growers.

Trading in the shares will be restricted for two years, and the redeemable preference shares, expected to be worth about $35 million - representing the cash reserves of the board - can be cashed in.

Board reserve funds, which stood at $109.1 million in June 2001, are being gobbled up by the restructuring costs.

Its net assets last June were down to $79.5 million, and are forecast to drop to $67.3 million by the same time this year.

The board has until May 16 to submit a restructuring plan, which is well under way, to Agriculture Minister Jim Sutton. Legislation is expected around July.