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

 


FFW's Martinborough takeover bid crosses 90% threshold

Foley Family Wines' Martinborough takeover bid crosses 90% threshold

By Suze Metherell

June 19 (BusinessDesk) - Foley Family Wines, which is majority owned by American businessman and vineyard owner Bill Foley, has met the last of its conditions for its takeover bid for Martinborough Vineyard Estates, crossing the 90 percent threshold required to mop up the remaining shares.

Marlborough-based Foley Family Wines has secured 90.27 percent of the pinot noir maker's shares, according to a notice to the stock exchange today, meeting the second condition of its takeover bid having already received Overseas Investment Office approval. Foley Family Wines offered one Foley share for every 27.95 shares in Martinborough Vineyard, with the offer due to close on June 24. With more than 90 percent of acceptances, Foley Family Wines can enforce Takeovers Code provisions to buy the remaining shares.

Foley Family Wines will issue about 1.2 million new shares, with new holders making up 2.8 percent of the enlarged company. At Foley Family Wines’ last traded price of $1.45, the offer values Martinborough Vineyard at $1.8 million.

The winemaker 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.

The directors of Martinborough Vineyard recommended shareholders accept the offer and under a pre-bid agreement 41.28 percent of the shares had already been accepted when the offer was announced early May.

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. 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.

Shares in Foley Family Wines have declined 12 percent on the New Zealand Alternative Index this year, and the company has a market value of $62.9 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news