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

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