Dromana Estate Ltd has said it will buy the remaining shares it does not already own in the wine producer Yarra Valley Hills.

The AIM-listed Australian wine company said yesterday (22 June) that it will buy the remaining 50% of Yarra Valley Hills Pty Ltd and the outstanding 51% of the Yarra Valley Hills joint venture from Authorised Investment Fund Ltd (AIY) in an all-paper deal. Dromana will issue AIY with 32,000 shares at a price of 25 Australian cents and 8,000 options at 25 cents.

Dromana also said yesterday that negotiations with AIY regarding its offer to buy AIY's 20% participation in David Traeger Wines Pty Ltd were continuing.