Aussies paying a 'fair' price for last of Nobilo

By DITA DE BONI

BRL Hardy's offer for the remaining shares in Nobilo Wines was yesterday deemed fair by an independent report.

As the Australian vinting giant swoops in for the last bite of Huapai-based Nobilos, DeloitteTouche Tomatsu has ruled the 105c it is offering all shareholders - except the Vieceli and Nobilo families - to be in the range of fair market value.

"This equates to the upper end of our assessed value range [of 90c-105c]," it said.

The 105c offer to the remaining shareholders is the same as that first offered in the public takeover offer, made after BRL gained 41 per cent of the company then moved to acquire the Nobilo and Vieceli family shareholdings, worth 38 per cent.

Casa Nobilo was offered 115c for its stakes in recognition of the "strategic nature" of its holding, and the Vieceli family received 110c, primarily in a share swap for BRL shares.

That leaves 21 per cent of individual Nobilo shareholders who have been offered 105c a share.

Those with more than 3000 shares are able to opt for BRL Hardy shares in a swap which would value their shareholdings at 110c.

About 4 million shares have still not been redeemed from a total public share pool of 10.2 million.

Nobilo shares last traded on Friday at 110c each.

The share price was sitting at around 85c before BRL decided to step up its involvement in the company.

The stock rose to a high of 113c on July 12 during the takeover process before falling again.

BRL said yesterday that it would extended the deadline for its original public takeover offer from July 26 to August 8.

This was because it is now able to compulsorily acquire the company.

The wine industry is also speculating that BRL Hardy is considering a possible acquisition of Corbans Wines, which DB Group is soon to divest.

But BRL has said it considers Corbans' market valuation of $130 to $140 million to be "not earnings-per-share positive."

It says it would not pay more than $100 million for the wine producer.

BRL Hardy was formed with the merger in 1992 of two of Australia's oldest winemaking dynasties, Berri Renmano and Thomas Hardy & Sons.

The company distributes in Britain, Europe, the USA and Canada, and exports to more than 60 countries.



The company's 1999 sales totalled $A515 million ($651.8 million) and it has a market capitalisation of $A992 million.

BRL has been seeking expansion in recent years through acquisition or joint ventures overseas.