NEW ZEALAND - Delegat's Wine Estate to swallow Oyster Bay Marlborough Vineyards
Delegat's Wine Estate has begun the final stages of swallowing Oyster Bay Marlborough Vineyards, in order to protect its grape supply for the Oyster Bay wine brand.
Delegat's announced yesterday (10 January) that it will begin acquiring all remaining shares in Oyster Bay Marlborough Vineyards (OBMV). Delegat's said that the move is compulsory, because it acquired "90% or more" of the grape supplier's voting rights in December.
The move is intended to help Delegat's secure supplies for its Oyster Bay wine brand. OBMV plunged into the red after a collapse in grape prices for its fiscal year to the end of June, raising concerns about the firm's ability to weather the oversupply problems enveloping New Zealand's wine industry.
Delegat's said that remaining OBMV shareholders can either sell up for NZD2.08 (US$1.6) per share or transfer their existing shares to Delegat's shares. Delegat's began efforts to acquire the remainder of OBMV in October last year. It already owned 54.9% of the business.
The group said at the time that full OBMV ownership would turn it into a "vertically-integrated, diversified wine company".
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