Panel Returns To Court On Oyster Bay Takeover
26 October 2005
Takeovers Panel Returns To Court On Oyster Bay Takeover
The Takeovers Panel has today filed a further application in its Wellington High Court proceedings relating to the partial takeover offer by Delegat’s Wine Estate Limited for 50.1% of the shares of Oyster Bay Marlborough Vineyards Limited.
The Panel is asking the Court to make several orders under sections 34 and 36 of the Takeovers Act 1993, including orders that would:
- require Oyster Bay to distribute a correcting statement, in a form approved by the Panel, to shareholders who had accepted Delegat’s offer;
- require Delegat’s to supply information in a form approved by the Panel to those same shareholders; and
- give those accepting shareholders 14
days to reconsider their acceptances of Delegat’s takeover
Delegat’s and Oyster Bay are expected to consent to the Court orders the Panel is seeking.
If the number of shareholders who revoke their acceptances is such that Delegat’s would not gain control of more than 50.1% of the voting rights in Oyster Bay, the takeover offer would fail. If the level of acceptances exceeds 50.1% at the end of the process, then the takeover offer would succeed and Delegat’s would pay out accepting shareholders after scaling.
Peter Yealands Investments Limited and Mr David Rankin, parties to the proceedings, are asking the Court to cancel or make void the Delegat’s offer so that the takeover process can restart.
The Panel is submitting to the Court that starting the takeover process again is not warranted in the circumstances of Delegat’s offer.
The Panel is seeking an urgent Court hearing so that the outcome of the takeover can be settled without undue delay. Oyster Bay is currently due to hold its annual general meeting on 25 November 2005. It is important that control of voting rights is clearly established before that meeting.