Foley Family Wines Limited completed the acquisition of Mt Difficulty Wines Ltd.
February 07, 2019
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Foley Family Wines Limited (NZSE:FFW) agreed to acquire Mt Difficulty Wines Ltd for NZD 55 million on November 15, 2017. The transaction also covers Mt Difficulty's property interests, winemaking and cellar door facilities. Foley Family Wines Limited is considering bank borrowings and other capital raising options to the transaction. Foley Family Wines Limited shall make payment of NZD 49.5 million on completion while remaining NZD 5.5 million shall be payable within 18 months after completion. As of October 24, 2018, Foley Family Wines Limited (NZSE:FFW) agreed to acquire Mt Difficulty Wines Ltd for NZD 52 million. Deal will be financed from a capital raising of up to NZD 20 million with placements of shares to new investors and some existing shareholders to partially fund the purchase.
The transaction is subject to approval by Overseas Investment Office and by the shareholders of Foley Family Wines Limited and Mt Difficulty Wines Ltd. Foley Family Wines will ask shareholders for approval in the first quarter of 2018. Transaction is also subject to third party approval. All the conditions are expected to fulfill by September 30, 2018. On November 29, 2017, Mt Difficulty Wines' shareholders approved the transaction. As of March 28, 2018, deal has been approved by the shareholders of Foley Family Wines. As of March 12, 2018, Foley Family Wines Limited issued notice of special meeting of shareholders to be held on March 28, 2018. As of December 13, 2018, deal is approved by Overseas Investment Office. If agreement is terminated, then either party will not have any claim against other party. The transaction is expected to be completed on around June 30, 2018. As of March 12, 2018, completion of transaction is expected to complete during third quarter of 2018. As of September 28, 2018, the transaction is expected to complete on December 31, 2018. As of December 13, 2018, deal is expected to close in January 2019.
Foley Family Wines Limited (NZSE:FFW) completed the acquisition of Mt Difficulty Wines Ltd on February 8, 2019.
Foley Wines Limited is a New Zealand-based integrated wine company producing table wines with the marketing and sales of premium wines in New Zealand and various export markets. The Company operates in the wine industry. The Company offers various wine brands, including Te Kairanga, Vavasour, Mt Difficulty, Russian Jack, Dashwood by Vavasour, Roaring Meg, Grove Mill, Martinborough Vineyard, Lighthouse Gin, Sanctuary, Te Tera, Goldwater, Boatshed Bay, Clifford Bay, And The Pass. The Companyâs vineyards are located in Marlborough, Martinborough and Central Otago, New Zealand. The Company sells its products in New Zealand, Australia, the United States of America, Canada, the United Kingdom, Europe and rest of the world. The Companyâs subsidiaries include Vavasour Wines Ltd, Goldwater Wines Ltd, Clifford Bay Wines Ltd, Te Kairanga Wines Ltd, Grove Mill Wine Company Ltd, Sanctuary Wine Company Ltd, Martinborough Vineyard Wines Ltd and The New Zealand Wine Company Ltd.