Delegat’s Go through 74
Delegat’s Go through
74%
More than a third of
the shareholders of Oyster Bay Marlborough Vineyards Limited
(“Oyster Bay”) have now accepted the Delegat’s Wine
Estate Limited (“Delegat’s) revised takeover offer of
$2.08 cash or one Delegat’s Group Limited share for every
Oyster Bay share.
The acceptances
received lift Delegat’s holding from 55 per cent before
the offer was launched to 74 per
cent.
The independent directors, who
have unanimously recommended shareholders accept the offer,
are now urging remaining shareholders to take action with
the closing date of 14 December 2010 fast
approaching.
Oyster Bay chairman Sandy
Maier says the closing date cannot be extended unless the
offer is declared unconditional by
Delegat’s.
“The independent
directors strongly recommend remaining shareholders accept
the Delegat’s offer and post their acceptance as soon as
possible to allow time for the form to be received by the
registry.”
“If acceptances reach 90
per cent Delegat’s will have the option of moving to
compulsory acquire the remaining shares, a process that will
result in delayed payment for those shareholders who do not
accept the offer.”
Mr Maier also
reminded shareholders that the Delegat’s offer is at the
top of the valuation range assessed by the independent
expert and 30 per cent above the pre-announcement share
price.
“If the takeover offer fails
to deliver Delegat’s at least 90 per cent of Oyster Bay,
the company may be forced to launch a substantial rights
issue to satisfy its bankers who have granted a waiver for a
breach of banking covenants until 31
December.
“Existing shareholders
would be asked to contribute approximately $1.55 for every
Oyster Bay share they currently hold. Given this it is
likely Oyster Bay shares will trade below the offer price
and the pre announcement price if the offer is not
successful. The independent directors do not regard this as
the best outcome for shareholders,” Mr Maier
says.
ENDS