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Delegat’s gets to 74% of Oyster Bay

Delegat’s gets to 74% of Oyster Bay, shareholders get hurry-up from chairman Maier

Dec. 7 (BusinessDesk) - Winemaker Delegat's Group has lifted its interest in Oyster Bay Marlborough Vineyards to 74% and the target company’s chairman Sandy Maier has urged remaining shareholders to accept the offer.

Oyster Bay, which relies on Delegat’s to buy its grapes, is under pressure to see the takeover succeed because its bankers have granted a waiver until Dec. 31 from a breach of bank covenants.

If Delegat’s fails to get to 90%, Oyster Bay “may be forced to launch a substantial rights issue to satisfy its bankers,” Maier said in a statement. That would amount to about $1.55 per Oyster Bay share that existing shareholders would be asked to contribute, he said.

Delegat’s, which owned 55% of Oyster Bay before making its takeover offer, is paying $2.08 a share for the rest of the grape grower. The offer closes on Dec. 14. The shares last changed hands last month at $1.85 and were as low as $1.40 in August.

The offer price is at the top end of an independent valuation range and 30% above the pre-announcement share price.

Delegat’s rose 2.2% to $1.90 today.

(BusinessDesk)

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