Delegat's buys out Yealands' stake

Delegat's Group will increase its holding in Oyster Bay Marlborough Vineyards to 54.92 per cent under a settlement of long-running legal proceedings with Peter Yealands and Peter Yealands Investments.

The proceedings arose from a five-month battle for control between Oyster Bay's main shareholders, Delegat's and Yealands, in 2005. Delegat's will buy all of Yealands' 433,816 shares in Oyster Bay, equal to 4.82 per cent of the company, at $1.80 a 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 GST 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.

- NZPA