Richina to sell Colyer Mair

The company says it has agreed a conditional sale to Lowe, and the final purchase price depends on the value of Colyer Mair's working capital at settlement.

Richina has obtained a conditional waiver from the NZSE over obtaining shareholder approval for the sale and says the final sales price will be payable in cash on completion and will be a modest premium to book value.

Richina's directors claim the sale is in the best interests of all shareholders.

"The New Zealand semi-processed leather industry is a cyclical one, dependent on the supply of pelts and skins, and international demand," the directors say.

"Factors such as climate, exchange rates, international trading conditions and fashion trends - all factors outside the control of the company - impact on its performance."

The directors say they have developed Colyer Mair to its full potential in its present state, and that as part of a larger, specialist tanning and fellmongery group its business prospects will be enhanced.

Proceeds from the sale will be used to support Richina's existing businesses.

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