Delegat's buys Hawkes Bay vineyard

RICHARD MEADOWS
Last updated 12:59 25/01/2013
DGL 6.150 -0.05 -0.81%
DGL

Click for a detailed chart

Fairfax Media
Delegat's Group CEO Jim Delegat

Relevant offers

Industries

Road toll breaks for electric vehicles 'interesting question' NZX listing puts price on NZME Staff made redundant from Port Taranaki Ram-raids force dairy owners to sleep on floor of east Auckland shop Toyota New Zealand moves to electric vehicles - the used car way Gym members fume as doors shut at Hamilton Configure Express NZ cigarette plain packaging law would see Imperial Tobacco sue for compensation Japan a land of opportunities for NZ firms We won't own cars any more - we'll share them, forecasts Toyota NZ boss Pound falls to 30-year low against US dollar amid anti-global sentiment

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