Oyster Bay Sauvignon Blanc. Picture / Andrew Labett
The fallout from last year's battle for Oyster Bay Marlborough Vineyards continued to reverberate yesterday with NZX Discipline making one final ruling on the same day as the company's annual meeting.
The battle - between Peter Yealands Investments and Delegat's - was ultimately won by Delegat's, which ended
up with 50.1 per cent of Oyster Bay.
Chairman Bill Falconer told yesterday's AGM in Auckland that Oyster Bay had now settled all cost and compensation issues arising from the takeover offers with shareholder David Rankin, who sided with Yealands, and with the Takeovers Panel.
Oyster Bay's costs associated with the takeover battle and complaints by Yealands helped keep June year net profit of $920,000 only fractionally above the previous year's result.
That was despite a 179 per cent increase, to $2.2 million, in profits before non-recurring costs and tax.
Yealands went to NZX Regulation during the battle, seeking disclosure of information about grape yields and grape prices paid by Delegat's.
NZX Regulation found that Oyster Bay was not required to disclose the information.
So Yealands asked NZX Discipline to review the NZX Regulation ruling.
Yesterday NZX Discipline upheld the original NZX Regulation stance.
However, it said the case raised a general question about the adequacy of Oyster Bay's disclosure to shareholders over grape prices paid by a major shareholder. "But that is not an issue which we are required to consider in the context of this determination."
Falconer said he hoped negotiations with Yealands over outstanding matters could be completed in the near future. He said it would be better to settle rather than incur further court expenses.
When it reported annual results in August, Oyster Bay said the task before directors was to "clear away the residue from the takeover contest as rapidly as possible".
