Delegat's opens $45m public offer

WELLINGTON - Delgat's Group public offering of $45 million in new shares opened today.

The group is offering 32 million new shares at $1.40 each. On completion of the offer the group will have 100 million shares on offer, and a market capitalisation of $140 million.

Delegat's was established by Nikola and Vidosava Delegat in 1947. After the float their family and associates will retain a 68 percent stake in the group.

Some $30 million of the new shares will be allocated to clients of NZX firms and institutional investors. The remaining $15 million will be allocated to a priority and public pool, which will be underwritten by ABN Amro Craigs.

The offer will close on April 13, with trading on the stock exchange expected to follow on April 21.

Delegat's is projecting its operating revenue will rise from $58 million in 2005, to $80.8 million in 2006, and $122.5 million in 2007.

Earnings before interest, tax, depreciation and amortisation are projected to rise from $9 million in 2005, to $19.3 million and $41.6 million in 2007.

Delegat's float has been anticipated by the market for some time. It was delayed due to a protracted and messy takeover battle for Oyster Bay Marlborough Vineyards. Delegat's finally won a majority stake in Oyster Bay early this year.

- NZPA