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MELBOURNE - US-based Yarraman Winery has said it remains committed to a takeover deal for Australian wine maker Evans & Tate, which rejected its offer on Friday.
"Yarraman advises that negotiations with the board of Evans & Tate, regarding a merger between the companies, are ongoing and Yarraman remains committed to the deal," the company said.
Evans & Tate said on Friday it would not be accepting the offer in its current form.
Yarraman last month made a conditional takeover offer for the firm after securing a 19.9 per cent stake from its former executive chairman.
Yarraman said director Bill Middleton would remain in Perth to continue discussions.
"We will be sitting down with the Evans & Tate board to discuss any concerns with the offer and are confident of resolving any issues," Yarraman said.
Evans & Tate closed flat at 17.5 Australian cents on Friday, giving it a market capitalisation on A$16.1 million ($18.5 million). The stock was trading at more than A$1.50 five years ago.
Yarraman had offered one of its shares for every nine Evans & Tate shares. Yarraman says the offer values the company at A$131 million, including preference shares, convertible notes and A$90 million in debt.
- REUTERS
