Council Explores Equity Options For IWL

Hamilton City Council has agreed in principle to support Innovation Waikato Limited’s (Innovation Park) move to explore options for the involvement of new equity partner.

At its recent meeting, Councillors agreed to a resolution to which gave approval to the company’s board of directors to undertake further detailed discussion with a new capital investor.

The transaction being explored would see the company – jointly owned by Hamilton City Council and The Katolyst Group – issue 1247 new shares to agri-business firm Eden AgriCapital Ltd in exchange for a 50% interest of Innovation Waikato Limited, and a significant injection of new capital into the company. 

If concluded, the transaction would see Council hold 9.55% of the shares in the company, down from its current ownership level of 19.8%.

Mayor Julie Hardaker said the potential introduction of a new partner was exciting news for Innovation Waikato Limited, as it would allow the park to pursue its growth plans and contribute to wider economic growth in and around Hamilton.

Due diligence on the transaction was still be undertaken, and a final decision from both Council and Katolyst would be made in future, once the company’s board of directors reported back to council.