Delegat's buys Hawkes Bay vineyard for $8.5m

Last updated 14:51 29/01/2013

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Listed winemaker Delegat's Group, which makes the Oyster Bay brand, has snapped up a struggling Hawke's Bay vineyard.

The company has paid $8.5 million for a 61-hectare vineyard and winery owned by Matariki Wines and Stony Bay Wines, both in receivership.

According to the first receiver's 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. Fairfax NZ

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- The Marlborough Express

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