New Zealand’s Cavalier Seeks JV Approval

Wellington, New Zealand, October 12, 2007-- Carpet maker Cavalier Corp has applied for Commerce Commission approval to form a joint venture with privately owned carpet company Norman Ellison.

Under the agreement, the new joint venture company would buy the carpet business and subsidiaries of Norman Ellison, and Norman Ellison shareholders would receive shares in NZX-listed Cavalier.

Cavalier manufactures and distributes broadloom carpets to the domestic and export markets, while Norman Ellison has an Auckland-based yarn spinning factory, and manufactures carpets in New Zealand and Australia.

Last month, Cavalier said it had wanted to take a 70% stake in Norman Ellison to boost its presence in Australia, and had entered a conditional agreement with the company.

The new company would have net operating assets of around $23 million and paid-up capital of $8 million, but Norman Ellison Carpets would retain its own identity in the marketplace.