Yealands’ new offer aims to reignite vineyard war

Peter Yealands is trying to reignite a bidding war with Delegat's Wine Estate for control of Oyster Bay by making a new takeover offer for the vineyard.

Yealands said yesterday he would offer Oyster Bay shareholders $4.50 a share for 50.01 per cent of the NZX-listed vineyard .

The move is Yealands' latest attempt to derail Delegat's offer in a six-month battle that shows no signs of ending.

Meanwhile, the fate of Delegat's $4-a-share takeover offer is tied up in court.

The Takeovers Panel will seek High Court orders on November 9 that would require Oyster Bay to provide new valuation data to shareholders who accepted the Delegat's offer. The new data shows that without Oyster Bay's existing contracts to supply grapes to Delegat's, it would be worth $90 million, double what was indicated in Oyster Bay's original target statement.

If the High Court grants the orders, Oyster Bay shareholders will have 14 days to uphold or revoke their acceptances. At the end of the process, if acceptances top 50.1 per cent, the Delegat's offer would stand and shareholders would be paid. This would stop Yealands' bid proceeding.

Under the Takeovers Code, Yealands - Oyster Bay's second-largest shareholder - is legally entitled to make a new offer.

But Kerry Morrell, the panel's senior executive officer, said Yealands' proposed offer could not proceed until the court resolved the matter involving the Delegat's bid.

Delegat's managing director, Jim Delegat, said his company was standing firm on its $4 bid and supported the process that the panel had put in place.

"In the interests of all Oyster Bay shareholders, we are committed to achieving finality and stopping the ongoing costs which have already forced Oyster Bay to defer payment of this year's dividend," said Delegat.

The Oyster Bay dividend of 10c a share was set to be paid on November 4.

Late last month, the panel said it asked the High Court for an urgent hearing to ensure that control of Oyster Bay voting rights would be clearly established before its annual meeting on December 9.

Yealands is also suing Oyster Bay and Delegat's, seeking to have the two parties permanently restrained from completing the offer. He is also suing for financial damages.