1 Jun 2011

PGG Wrightson to sell stake in NZ Merino Company

1:59 pm on 1 June 2011

PGG Wrightson is planning to sell its half stake in the New Zealand Merino Company for $7.6 million.

The stake in the sales and marketing company has been bought by farmer-owned Merino Grower Investments, though the deal needs shareholders' approval.

If approved, the deal will be settled at the end of the month.

PGG Wrightson managing director George Gould says the deal supports merino growers' aim to determine their own destiny through gaining outright control of the company.

Merino Grower Investments has about 630 farmer-shareholders.

Chairman Bob Brown says it's been a long-held dream of growers to control the company that markets the wool they produce.

The New Zealand Merino Company sells about $105 million of merino and mid-micron fibre each year.