Delegat's Wine Estate has increased its stake in Oyster Bay Marlborough Vineyards to 74 percent, after it lifted the price of its bid last month to $2.08 from $1.80 a share.Delegat's owned 54.9 percent of Oyster Bay before giving notice in October of a bi
Delegat's Wine Estate has increased its stake in Oyster Bay Marlborough Vineyards to 74 percent, after it lifted the price of its bid last month to $2.08 from $1.80 a share.
Delegat's owned 54.9 percent of Oyster Bay before giving notice in October of a bid to offer $1.80 a share in cash, or one Delegat's share for every Oyster Bay share.
Independent directors, who have unanimously recommended shareholders accept the offer, said the closing date of December 14 could not be extended unless the offer is declared unconditional by Delegat's.
If acceptances reach 90 percent, Delegat's will be able to compulsorily acquire the remaining shares.
A substantial rights issue may be required if the offer falls short of 90 percent, to satisfy bankers who granted a waiver for a breach of banking covenants until the end of December, Oyster Bay chairman Sandy Maier said.
Existing shareholders would be asked to put in about $1.55 for every Oyster Bay share they currently hold.
"Given this it is likely Oyster Bay shares will trade below the offer price and the pre-announcement price if the offer is not successful," Mr Maier said.
"The independent directors do not regard this as the best outcome for shareholders."
