Delegat's buys Hawkes Bay vineyard

RICHARD MEADOWS
Last updated 12:59 25/01/2013
DGL 5.800 0.02 0.35%
DGL

Click for a detailed chart

Fairfax Media
Delegat's Group CEO Jim Delegat

Relevant offers

Industries

'Silly' to suggest Xero has endorsed Trump administration, says CEO Rod Drury Sharp fall in Wellington building consents in November, due to quake Creating a new destination for cruise ships in Bluff Privacy Commissioner 'names and shames' photo firm over privacy breach Former Saatchi chair Kevin Roberts speaks about the words that cost him his job Aussie company Volley cops a serve from Christian lobby for using sex to sell tennis shoes Wine lovers from 20 countries heading to capital to celebrate Kiwi pinot noir Pot for pooches? Medical cannabis being used to treat doggy anxiety Cambridge University wants a Lego professor of play Greens call for Simon Bridges to explain delays to UFB negotiations

Listed winemaker Delegat's Group, which makes the Oyster Bay brand, has snapped up a struggling Hawkes Bay vineyard for $8.5 million.

The company announced to the market today that it had bought out a 61-hectare vineyard and winery owned by Matariki Wines and Stony Bay Wines, both in receivership.

According to the first receivers' reports, the beleaguered companies owe creditors about $11.2m.

Unsecured creditors, owed about $136,000, are unlikely to be paid.

The purchase brings Delegat's Hawke's Bay vineyard holdings to a total of 500 hectares.

The new vineyard is predominantly planted with Merlot, Cabernet Sauvignon and Syrah grapes, and the winery has a processing capacity of 600 tonnes.

Over the last six months Delegat's has also bought two properties in Marlborough; a 121-hectare vineyard in the Wairua Valley and 91 hectares of bare land in the Awatere Valley.

Managing director Jim Delegat said the group continued to grow long-term demand for its branded wines, and the investment in high-quality vineyards supported its supply requirements.

Delegat's Group shares were unchanged at $3.20 in recent trading, and have risen 42 per cent over the past 12 months.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content