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 theWairua 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.
- The Dominion Post
What do you make of the proposed conference centre/hotel for Wellington?Related story: Convention centre to get OK