Delegat's planning float

Delegat's Group is set to make an initial public offer (IPO) of its shares, according to a report in a national Sunday newspaper.

The paper quotes Delegat's chairman Robert Wilton as saying the group was undertaking due diligence.

He said the winemaking group would be presenting itself to the market as a growth stock.

Any float is unlikely to proceed until the ownership of Oyster Bay Marlborough Vineyards is resolved.

Delegat's currently holds a 33 per cent stake in Oyster Bay, and had a $4 partial takeover offer for the company scrapped by the High Court.

The dispute over Delegat's offer centred on concerns about valuations of the company used in Oyster Bay's target company statement (TCS).

Oyster Bay shareholders Peter Yealands and David Rankin contended the $45 million valuation listed in the TCS was far too low.

The TCS valuation was on an encumbered basis, meaning it included long term grape contracts Oyster Bay. Mr Yealand and Mr Rankin said the valuation should have been unencumbered, which they said would put Oyster Bay at about $90 million.

Mr Yealands has said he will make a fresh bid for Oyster Bay at $4.50 a share, before Christmas.

Delegat's has not yet announced if it plans to launch a new offer.

- NZPA