Yealands freed of $4.50 vineyard bid

Peter Yealands

One of the final hurdles in Delegat's Wine Estate's latest takeover offer for Oyster Bay Marlborough Vineyards has been cleared.

On Tuesday, the High Court released Peter Yealands from his promise to bid at least $4.50-a-share or more for the listed vineyard. Yealands is now free to accept Delegat's $6-a-share offer.

Delegat's has set a record date of January 6. Earlier this month, Yealands said he deemed the new price "very, very good" and was planning to accept.

Delegat's and Yealands had been fighting for control of Oyster Bay since May but, nearly two weeks ago, found common ground when Delegat's agreed to the $6 bid.

Yesterday, Delegat's said it had obtained approval from the independent directors of Oyster Bay to increase the offer price. It had initially said it was prepared to pay $5-a-share in mid-December, but five days later said it would bid $1 more a share.

Delegat's is Oyster Bay's largest shareholder with a roughly 33 per cent stake. The new offer will give it control with 50.1 per cent.

Yealands, who holds nearly 7 per cent of the shares, said earlier this month, with scaling, he and other minority shareholders would retail residual shares of the vineyards and be able to recoup their initial investment by accepting the new offer.

Delegat's $4 offer, which was accepted by the majority of shareholders in August, was cancelled by the High Court last month due to omissions in the target company statement sent to shareholders.