Council agrees to new shareholder for IWL

Innovation Waikato Limited has been given approval for a capital investment company to take a 50% shareholding in the company valued at $13.2 million.

Innovation Waikato Limited (IWL) is currently owned by Hamilton City Council (19.8%) and Katolyst Trust (80.2%).

At its Ordinary Meeting this week, Council voted unanimously to allow Eden Agricapital Ltd to invest in news shares to provide a capital injection to the company, which Council has acknowledged needs a capital injection to continue its growth. The funds will provide the company with the ability to reduce debt, and also develop new features at its Innovation Park site.

Council’s Chief Executive Barry Harris said: “Council has recognised IWL needs a capital injection to continue its growth and maintain its contribution to economic development in the region.”

If concluded, the transaction would see Council hold 9.9% of the shares in the company, down from its current ownership level of 19.8%.

Mr Harris said the terms of the transaction would allow Council to sell its shareholding to Eden Agricapital Ltd after 18 months if it wishes. The transaction is subject to the approval of the Katolyst Trust, and Eden Agricapital raising the investment capital required to complete the transaction by 31 March 2012.