Delegat’s Increases Offer for Oyster Bay Shares
NEWS RELEASE 6 JULY 2005
DELEGAT’S INCREASES OFFER FOR OYSTER BAY SHARES
Delegat’s Group Limited has today given notice that its subsidiary Delegat’s Wine Estate Limited will increase the price at which it intends to make a partial takeover offer for Oyster Bay Marlborough Vineyards Limited, to $3.35 per share.
Delegat’s has a 32.6 percent shareholding in Oyster Bay Marlborough Vineyards, and is offering to purchase additional shares to increase its shareholding to 50.1 percent.
The new price of $3.35 per share is 10 cents per share higher than the offer price announced by Peter Yealands Investments Limited.
The Managing Director of Delegat’s, Mr. Jim Delegat, said “Delegat’s offer is clearly superior to the offer from Peter Yealands Investments Limited – and the price is 20 cents per share above the top of the valuation range assessed by independent experts Ferrier Hodgson. Acceptance of the Delegat’s offer will allow shareholders to receive a very attractive price for a portion of their shareholdings, and at the same time retain an ongoing interest in the future performance of Oyster Bay. ” Mr. Delegat noted that Oyster Bay shareholders had invested in the company with a clear understanding of the vision and philosophies it shared with Delegat’s. “These have been underpinned by Delegat’s cornerstone shareholding in Oyster Bay, and its long-term commitment to both the management of quality vineyards for Oyster Bay and the purchase of its grapes.
Delegat’s has worked together with Oyster Bay and its directors in an open and transparent manner, to pursue the shared vision and philosophies. We view this shared approach as fundamental to the success of Oyster Bay."
“I have received a lot of feedback from Oyster Bay shareholders which has been overwhelmingly supportive of shareholders retaining their connection with Delegat’s,” Mr. Delegat said. “This suggests our offer has a good chance of succeeding, and in contrast the offer from PYIL is very unlikely to do so. Mr. Yealands has implicitly acknowledged this, stating in his communication to shareholders of 29 June 2005 that;
“If PYIL’s offer is unsuccessful, PYIL will sell all its shares in Oyster Bay. In the first instance it will do so by accepting Delegat’s offer….” ”
Mr. Delegat said neither Delegat’s Wine Estate nor the Delegat family has any intention of selling its shares in Oyster Bay.
He said the formal offer documents from Delegat’s Group were in the final stages of preparation, and were expected to be mailed to shareholders shortly.