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

 


Foley Family Wines plans to move to NZX main board

Foley Family Wines plans to move to NZX main board following takeover, placement

By Tina Morrison

June 25 (BusinessDesk) - Foley Family Wines, which is majority owned by American businessman and vineyard owner Bill Foley, plans to step up to the main board of the New Zealand stock exchange following its takeover of Martinborough Vineyards and the sale of $10 million of shares to institutional investors.

The company, which has two wineries in Marlborough and two in Martinborough, as well as links to wine distributor Eurovintage, restaurateur Nourish Group and luxury lodge Wharekauhau though Foley's private company, has a market capitalisation of about $63 million on the stock exchange's AX market for smaller companies. Its takeover offer for Martinborough Vineyards has just been declared unconditional, it said in a statement to the exchange today.

"With Foley Family Wines' increased capital and shareholder base, it now intends to pursue a move from the NZAX to the NZX Main Board in the short to medium term," the Marlborough-based company said in a statement. The timing is yet to be determined, it said.

The wine company, which owns the Te Kairanga, Vavasour, Grove Mill, Sanctuary, Goldwater and Dashwood wine brands as well as Lighthouse Gin, sold 7,092,199 shares through an overnight bookbuild to institutional investors at $1.41 apiece, the company said today. The stock rose 3.5 percent to $1.50.

The funds raised will be used to repay $5 million of debt linked to the Martinborough Vineyard acquisition, the company said in presentation notes provided to the exchange. Of the remaining funds, $2 million will go towards investment in Grove Mill bottling warehouse facilities, $1 million for a new barrel room and winery upgrade at Te Kairanga and $2 million set aside for further investment opportunities, the company said.

Foley Family Wines said its 2014 vintage increased 19.4 percent to 6,807 tonnes from the year earlier, with a high quality harvest as it beat the rain.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news