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

 

Foley Family Wines buys Mt Difficulty for $55 million

Foley Family Wines buys Mt Difficulty for $55 million

By Sophie Boot

Nov. 15 (BusinessDesk) - Foley Family Wines, which is controlled by US businessman Bill Foley, has bought Mt Difficulty Wines for about $55 million, subject to Overseas Investment Office approval.

The NZAX-listed company said last month that it was in talks to buy the winemaker, adding the premium Mt Difficulty and Roaring Meg brands to its suite which already includes Vavasour, Grove Mill and Te Kairanga.

The transaction also covers Mt Difficulty's property interests, winemaking and cellar door facilities. It's subject to approval from shareholders of both companies along with the OIO. Foley Family Wines will ask shareholders for approval in the first quarter of 2018 and anticipates the acquisition will be completed around June 30, 2018.

The company is considering funding options for the deal and said it has had "positive preliminary indications" from its bank so is considering that along with other capital raising options.

Foley Family Wines posted a 38 percent decline in 2017 annual profit to $3.1 million, including a $2.6 million charge on damage caused to its Grove Mill Winery site in Marlborough after the November 2016 Kaikoura earthquake and $4.7 million from insurance payments.

The company spent $3.2 million on plant, property and equipment due to the earthquake damage and had just $263,000 of cash and equivalents at the June 30 balance date.

The NZAX-listed shares last traded at $1.49 and are flat this year.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>

ALSO:

Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>