Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Foley Family Wines to make bid for Martinborough Vineyard

Foley Family Wines to make $1.9M offer for Martinborough Vineyard Estates

By Tina Morrison

May 9 (BusinessDesk) – Foley Family Wines, majority owned by American businessman and vineyard owner Bill Foley, plans to make an all-scrip $1.9 million takeover offer for pinot noir pioneer Martinborough Vineyard Estates and has already secured agreements to buy 41 percent of the company.

Marlborough-based Foley Family Wines is offering one Foley share for every 27.95 shares in Martinborough Vineyard, it said in a statement. The offer will run from May 26 until June 24. The directors of Martinborough Vineyard recommend shareholders accept the offer and owners of 41.28 percent of the shares have already accepted under a pre-bid agreement, Foley Family Wines said.

The acquisition of Martinborough Vineyard would add to Foley’s Te Kairanga Wines company, just down the road. Foley Family Wines, which controls about 364 hectares of land in Marlborough and Wairarapa, is betting the enlarged company’s bigger scale will boost efficiency and improve profitability.

“Over the last decade, it has been challenging for small to medium sized winemaker such as Martinborough Vineyard Estates to trade profitably and deliver satisfactory returns to their shareholders and it is likely it will continue to be difficult for such companies without the benefits of scale and distribution,” Foley Family Wines chairman Bill Foley said in a letter to Martinborough Vineyard shareholders.

“Our offer will enable the operations of Martinborough Vineyard Estates to continue within the larger Foley Family Wines family, and the offer enables shareholders to have an interest in a viable, well financed, publicly listed wine company,” he said.

Foley Family Wines said it plans to continue to operate Martinborough Vineyard’s business of grape growing and wine making but will offer significantly greater opportunities to export its wines to the US and elsewhere using its distribution channels.

If the offer is accepted in full, Foley Family Wines would issue about 1,238,274 new shares in the company, with new holders making up 2.8 percent of the enlarged company. At Foley Family Wines’ last traded price of $1.50, the offer values Martinborough Vineyard at $1.9 million.

The offer is conditional on Foley Family Wines gaining 90 percent of the shares and consent from the Overseas Investment Office.

Should the offer be accepted, Foley Family Wines will pay $708,450 to Martinborough Vineyard to pay off loans advanced by its shareholders, who will then pay $1.40 apiece for 506,036 new shares in Foley Family Wines, according to the takeover offer documents.

Shares in Foley Family Wines have advanced 23 percent in trading on the NZAX market over the past year, currently valuing the company at $65 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news