Two of New Zealand's well-known wine brands will be under one company label soon after Delegat's Wine Estate yesterday moved to compulsorily acquire the shares it does not already own in Oyster Bay Marlborough Vineyards.
Delegat's achieved the required 90% threshold on December 14 and was now required to proceed with the compulsory acquisition for the balance of the shares on issue, Delegat's chairman Robert Wilton said.
The offer for remaining shareholders was either taking one fully paid ordinary share in Delegat's for each fully paid ordinary share in Oyster Bay or taking cash of $2.08 for each Oyster Bay share.
Delegat's has 100.9 million shares on issue, and 10% would equate to $20.99 million, atthe offer price of $2.08 cash, Craigs Investment Partners broker Paul Valk said.
However there are a couple of things to note about the offer.
"Shareholders have the option of the cash $2.08 or taking Delegat's shares which currently have a value of $2.10, as they have increased 10c, or 5% today."
The $20.99 million was based on 10% but Craigs could not establish if Delegat's had received more than 90% in the offer.
Acceptances could be higher, he said.
