Shareholders like the taste of Moa acquisition

Moa Boss Geoff Ross.

Shares in brewer Moa have so far held on to gains made late last year on the back of the company's acquisition of bar and restaurant business Savor, no doubt providing some relief for long-suffering shareholders.

The stock closed yesterday up 2c at 50c, having bounced from 41c before the deal was announced on December 21.

Moa explained the acquisition of Savor, whose collection of Auckland bars and restaurants include Ostro, Seafarers, Ebisu, Azabu and Las Vegas, would almost triple its revenue and take the group into sustainable profitability.

The company posted an ebitda-loss of $2.1 million in the year ended March 31, and a $1.2 million loss for the six months through September. It is aiming to break-even for the current half-year.

It says the Savor purchase would add $3.6 million of operating earnings in its first full financial year.

Moa, which was founded by Geoff Ross in 2003, has reported consistent losses since listing in November 2012 after an initial public offering at $1.25 a share that raised $15m.

The company says a key strategy is to ensure its brand could successfully access valuable on-premise venues across New Zealand. Hence the purchase of Savor, which will cost Moa $13m in a cash and shares deal.