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Wine - Source: ONE News -
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Delegat's Group Ltd will increase its holding in Oyster Bay Marlborough Vineyards Ltd to 54.92% under a settlement of long running legal proceedings with Peter Yealands and Peter Yealands Investments Ltd.
The proceedings arose from a five-month battle for control between Oyster Bay's main shareholders, Delegat's and Yealands in 2005.
Under the settlement Delegat's will purchase all of Yealands' 433,816 shares in Oyster Bay, equal to 4.82% of the company, at $1.80 per share.
Delegat's will pay an allowance towards costs of $200,000 to Yealands to settle the proceedings and Yealands will pay $150,000 plus goods and services tax to Oyster Bay to settle takeover costs. Settlement is on July 31.
Oyster Bay chairman Sandy Maier said that in view of the costs and business disruption involved in prosecuting and defending the various claims, the terms of the settlement were commercially and financially compelling.
Jim Delegat, the managing director of Delegat's, said the settlement was in the best interests of the shareholders of both companies.
"Not only are significant costs avoided as a consequence, but more importantly the companies could now concentrate on their respective business without the damaging distraction and disruption of continuing legal proceedings."
